Mortgage just to get somewhere better?

Catatonia

If you had the choice, would you rather live in an ok property (one that was adequate for your needs in terms of space and condition etc) and be mortgage free, or have a mortgage of about £100k to get somewhere nicer (eg more character, more space)?

Is being mortgage free worth it if you would still hanker after a 'better' property?

BitterAndTwisted

Depends on the level of income and how secure employment was. Being mortgage-free in the current economic climate sounds like absolute bliss to me.

TrickyDicky101

Funnily enough I am having that same kinda dilemma (not mortgage free, but with a very manageable one). I wish I could tell you what my answer is, but I don't know at the moment I *suspect* I will want the better place, as I know my current property is not where I want to spend the rest of my life (or rest of my working life, anyhow!).

azkaban420

Hi Catatonia,

It is a difficult one to answer as it really depends on the individual's circumstances. I personally would go for a mortgage if it meant being happier than where I was. Sometimes 'adequate' isn't enough

Good luck whatever you decide!

Az

Catatonia

It's a tough one. I am leaning towards getting somewhere more expensive, but not sure if I'm just being greedy. Although, I'm not sure being mortgage free and frittering my money away on meals out and holidays makes much more sense! I guess it would allow an earlier retirement/ fewer hours working though.

hazyjo

I'd say a lot depends on your age! I'm just about to take out a pretty hefty mortgage at 40 - mainly cos my house was big enough for me, but not now I'm with hubby. Need more space! It didn't seem worth moving up slightly so we've taken a big jump while the prices are down, and that will be our forever home.

Jx

Svenena

What about saving up all the money you're not spending on a mortgage for a year... then you could take out a smaller mortgage. You're in an excellent position to save, and it would make more sense than paying loads of interest on a mortgage.

hazyjo

Svenena wrote: »

What about saving up all the money you're not spending on a mortgage for a year... then you could take out a smaller mortgage. You're in an excellent position to save, and it would make more sense than paying loads of interest on a mortgage.

But if interest rates go up, if the OP's going to do it anyway, it might be a false economy as rates are currently low and they'd have to choose a mortgage on a higher rate for however number of years...

Jx

Jackinbox99

Tough one really, and similar to what ive just done (or trying to do).

Ive just bought a cheaper property (around 30k) less than mine was worth, with the idea being I can sell my current house, downgrade to the cheaper house and reduce my mortgage drastically, with the aim of being mortgage free before long.

It was a big decision to take after spending a small fortune getting my current house perfect. The new house has a much smaller garage, the garden is about 1/8th of the size of my current one, and its in a worse area. But, the appeal of being mortgage free swung it for me.

The problem I now have though, is that house prices are falling and my current house still isnt sold. The offers im getting in are nearly 30k less than the house was valued at, and similar (but not as good) ones sold in the street 8 weeks ago. So, at this rate, I will end up having swapped my nice house for a crappy one and not be any better off financially.

pjcox2005

I'd go for mortgage free, and using some of the additional money on luxuries to enjoy life (whether that be holidays to see the world or something else).

I think sometimes houses look nicer in the pictures but probably don't impact life that much whether the sofa is in a room 1 foot bigger or not.