15 or 30 Year Mortgage? Why you SHOULD take a longer term mortgage UK

15 or 30 Year Mortgage? Why you SHOULD take a longer term mortgage UK
15 year or 30 year mortgage is a question many home buyers ponder over and one I get asked daily. Here I explain why in the vast majority of cases I would always advise a longer term mortgage. Despite the fact that you would pay more interest over the longer period.

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Timeline
0:00 Introduction
1:25 Pros and Cons of a shorter term mortgage
2:47 Pros and cons of a longer term mortgage
4:11 Example of £200,000 mortgage over 15 years and 30 years
5:48 Inflation
6:38 Flexibility
7:22 Putting the money saved to work

*Your home may be repossessed if you do not keep up repayments on your mortgage*

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[Progressfs]

Check out the power of compound interest and how much £500 invested in a fund that returns a moderate 7% would make you over 30 years, to see one of the reasons i draw this conclusion

[doggydoggworld]

A very clear concise and professional video Mike, thanks for this! You dropped some true GEMS here. Especially explaining the inflation thing using the pound example, it gives us a lot of confidence in taking out longer term mortgages. Thanks!

[ThePinoyShinobi]

Thank you for explaining this in simple terms and making it easy to understand. Subscribed!

[katherinemary]

Great video, clear and gives things to think about. A question: if you take out a mortgage at x years, can you remortgage at a later date and change the no. Of years? Or does the term remain?

[nathanrogers]

40 years old- £68k over 11 years, 180k Equity, do u stick with the 11 years or spread it - or go with a bigger mortgage and move house over long-term mortgage? * We don't struggle with bills and top-notch credit records.

[ChrisM]

(2 years later) and a "surge in ultra long mortgages" is becoming the norm, to the extent, that payback is more and more extending well into retirement.
The cause of this is a simple catch22 - sickeningly high house prices, still rising, because there is more and more money handed out in those mortgages. Why? because in order to meet those insane asking prices lenders have gladly...
1) Significantly increased mortgage salary multipliers, and...
2) Significantly increased payback terms
No longer does 21 years at 2.5 x your salary give you enough money to buy a house, a sensible scenario that existed for many years.
--> THIS IS EXACTLY WHY the UK housing and rental market is COMPLETELY destroyed !!!
--> The ONLY way to reduce house prices is to increase interest rates...once you make these ultra high mortgages unaffordable to the majority, you can rest assure that the majority of sellers will reduce prices. Quickly !!! Unfortunately, the BOE won't do this effectively, and certainly not for a long enough time as to be effective. What to do ???

[frankiegoestohollywood]

Thanks Mike great information there! currently looking at trying to get out of my right to acquire home, my 5 years will be up in November 2023 but want to get out before this, I got £9k discount and will have to pay a percentage back to the social housing provider, do you think it’s worth staying put until the 5 years is up?

[aledevans]

What is the best repayment mortage for a air bnb / short term accomidation thanks

[rehantayyab]

Suppose i have 125k loan and 30 years mortgage, but i pay off everything at year 10 ( 20 years earlier) then only i need to pay extra at that point is early payment charge to finish this cycle or some other legal requirements as well ?

[mariocerdacornejo]

Can I get one mortgage for a house and while I’m still paying it get another one for another house?

[abcd-byrw]

Surely you a more poor in the long run with a 30 year mortgage as the bank gets more of your money and you receive less equity

[emmanuelakinbode]

Hi Michael, any number to call you on pls?

[MissAbsss]

Hiya. Thanks for the video.
Did u say rate on a 15yr fixed term pproduct is cheaper than a 40yr in the UK? The most fixed term I have seen is a 10yr. Where would we get a 15yr fixed term to last a 15yr loan duration?