Age: 33
Children: 1 (4 yo)
Income: 88k (78k base, 10k bonus)
Monthly take-home pay: 3794e (After pension and employer stock purchase program)
Debt: None
Do you own any investment or other property? No
What specific question do you have or what issues are of concern to you?
I have just gone sale agreed on a property for 320k, down-payment is 185k and it's a 30 year mortgage.
My plan is to hopefully pay off the mortgage in 7 years but opted for a 30yr for flexibility as who knows what can happen.
Avant are offering me a 4yr at 1.95% (495e per month) and 2.0% thereafter (probably subject to change) or i could go with the 7yr at 2.25% (516e).
Is it worth the risk going with the 4yr, given that mortgage rates could be > 5$ in 2026? Or just go with the 7yr?
Apologies for the basic question, this is all new to me.
Normally, it is a good idea to opt for as long a term as possible for the reasons you mention.
But the problem is that if you overpay by more than 10% of the balance, you will be subject to an early repayment charge as it's a fixed rate.
So if you plan to pay it off over 7 years, opt for a shorter term. This will increase your repayments and so any overpayment will be smaller and any early repayment fee will be lower.