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Should You Get A Long Term Or Short Term Mortgage?

MORTGAGES | 08.03.2019

One of the biggest decisions when choosing a mortgage is the length of time you fix your deal for. Terms can range from five years to 35, meaning you may have lots of choice when it comes to finding the right mortgage for you. Let’s take a look at the pros and cons of long term mortgages versus short term deals.

One of the biggest decisions when choosing a mortgage is the length of time you fix your deal for. Terms can range from five years to 35, meaning you may have lots of choice when it comes to finding the right mortgage for you. Let’s take a look at the pros and cons of long term mortgages versus short term deals.

Long term mortgages

Pros

If you’re looking to keep your mortgage payments as low as possible, a long term mortgage could be ideal. By spreading your debt over a period of 35 years, for example, your repayments are likely to be affordable and easy to manage.

Cons

Although your mortgage may seem cheaper when spread across a number of years, it’s likely to be far more expensive when you add all your repayments together. This is because you’ll pay more interest on a long term loan than you will on a short term loan and over time, this interest will accumulate to a much larger number.

Short term mortgages

Pros

Short term mortgages tend to be cheaper than those spread out over a long period of time. This is because interest has less time to accrue and the debt is paid off much quicker. Becoming debt-free sooner rather than later can also be a liberating experience, freeing up your income to be spent on other things and making your finances more manageable.

Cons

Although short term mortgages are cheaper overall, you will face higher monthly repayments than if you were to extend your mortgage term. You’ll need to factor these costs into your budget to make sure you can afford the repayments on top of other essential expenses. Potential lenders will also take affordability into account before deciding how much to lend. So, if your income is modest or you have a small deposit, you may find it difficult to secure a short term mortgage for the amount you need. If you’d like help finding the right mortgage deal for you, please get in touch with the team of mortgage brokers at TaylorMade. We’ll take a close look at your financial circumstances and compare a large number of mortgage deals on your behalf before highlighting the most suitable ones for you.
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Our address for this is:
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