Advise me!

sinclasc

Hi guys,
I own a 3 bed semi (modern), which I'm trying to sell at £130k.
I'm considering either:
a) Getting a smaller mortgage by wiser buying, since I want to be mortgage free later in life
or
b) Getting a bigger mortgage - £10k extra takes me into detached properties, which I beleive have more chance of rising in price (so I could sell later in life for more profit).

What do you guys think?

lynzpower

Buy clever

the smaller mortgage you have, the less interest you will pay.

Less waste of money to the banks and more savings for you

Thats what Id do.

silvercar

I would say think of your house as your home not as a way to make money. Would you be happy living in a smaller home? Have you always hankered after a detached house?

sinclasc

silvercar: Actually yes. Despite their just being two of us, we both would really love a detached house. It will stretch the budget, but...we're currently going through the dilema of whether to or not to.

cattie

sinclasc wrote:

It will stretch the budget, but...we're currently going through the dilema of whether to or not to.

If it's going to really stretch the budget then perhaps it's best not to even consider it & buy the smaller place to be mortgage free instead.

You have to work out what will happen when interest rates rise & whether you'd then be able to afford the payments on the detached house. Remember, a larger detached house has larger running costs too, higher heating bills for a start, higher council tax etc. You need to take all these factors into account.