Pay off mortgage...or buy a new house?

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  • cbsexeccbsexec Forumite
    530 Posts
    Part of the Furniture 500 Posts Name Dropper PPI Party Pooper
    Forumite
    Not quite sure about sending this as havn't replied before

    We are in 50's and nearing the end of our mortgage but live in a dilapidated house - needs lots of updating and repairs

    Could possibly knock it down and rebuild nice small energy saving house for approx 100k mortgage

    Is this a good idea? Thinking it will give us easy to maintain house as we get older and if the worst comes to worst could sell for at least 350k which would give us money to downsize and still have some left over for old age

    Does this sound sensible
  • cbsexec wrote:
    Not quite sure about sending this as havn't replied before

    We are in 50's and nearing the end of our mortgage but live in a dilapidated house - needs lots of updating and repairs

    Could possibly knock it down and rebuild nice small energy saving house for approx 100k mortgage

    Is this a good idea? Thinking it will give us easy to maintain house as we get older and if the worst comes to worst could sell for at least 350k which would give us money to downsize and still have some left over for old age

    Does this sound sensible

    Ooooh, this sounds like a really interesting idea, but I suggest you start a separate thread on a different forum (House Buying, Renting, Selling & Property Prices probably) - as a strategy it's not really the same as aiming to be mortgage free - and people with useful things to say probably won't notice it in the midst of this thread.
  • cbsexeccbsexec Forumite
    530 Posts
    Part of the Furniture 500 Posts Name Dropper PPI Party Pooper
    Forumite
    sorry

    said I was new to this

    will try what you said
  • oooh Rufus you don't want to tell Sloppy you're a women...he doesn't like them :rolleyes: ...Think he's been really "removed" this time though...
  • everyone is different - me & DH moved 18 mths ago to our 3rd home during our marriage & due to more or less keeping to original term & paying off a couple of thousand extra at each end of fixed term ( saved in bits during the term) we should still be able to pay off the mortgage in 5 years time, 25 years after starting - he'll be 50 & I'll be 46(sob!!) - but our 2 boys are coming to the end of secondary schooling so Uni fees could take a hit out of our plans - then its top up his ISA as extra pension & my ISA as retirement jollies fund ( motorhome for summer months mozeing about southern europe on the winery trail)

    our best mates are childless & both in good jobs, lived in 1st house & paid off in 18 years - moved to 4 bed detached last year & took out new mortgage of 100k but will still be paid off before retired - in fact they carried on paying 1st mortgage money into savings acc as they were used to paying out each month - when they moved they realised they should have done it years earlier - they can also downsize as extra funding when they retire ( to join us in southern Italy with a rather good red!) - I digress - but they are in a good position as both their pensions are company, non-contributary pensions

    my sister moved last week - sold the house she had bought with her ex-fiance, downsized but moved to a better area, was paying 150 pm mortgage now paying 400 but still kept to her original term so she will be mortgage free by 55

    so we are all different but it sounds like its doable & if you find the right house you'll know as soon as you walk in - sometimes we all look too far ahead & living in the present time is the best option - & when you get down to the bare bones, its just bricks & mortar & if it all go t**ts up you can sell & relocate

    we were in the same position when we moved - we had enough money to finish if we'd stayed but we decided to move which meant pushing back the mortgage free date but we've no regrets - this house is just what we wanted & feels like our final move

    good luck in what you decide
  • Have you considered taking out your new mortgage for, say a term of 20 years? When I remortaged last year I was asked what term I wanted (within reason I guess!) and settled on 22 years, as it seemed a better number than going back up to 25 again. :)

    Paying off my mortgage early is goal, but not in the short term as we are planning to move either this year or next, so that'll be another mortgage. My thoughts are to take a 20 year or less term, and then (finances permitting) try and pay it off within 10-12 years.
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