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Pay off or not to pay off?
Dadof2
Posts: 7 Forumite
My wife and I currently owe approx £57k on our mortgage (house is worth around £100k to £110k), which isn't a problem as we are both in work, live kind of frugally and are fervent savers to the point that we only buy new clothes when our current items are falling apart.
The quandary is that we now have two small children aged 5 and 2, and our house is starting seem smaller by the week(It's a two bed semi in mid-Cheshire). It's not a big house by any means, but now its dimensions are really beginning to show.
My wife would like to move to a bigger house, but I would like to extend our current house or as a concession to my wife have a small extension on the rear of the house with a nice new kitchen, with a view to renting it out.
We can, if we want to, pay off the mortgage towards the end of 2013 and then start saving for a larger property(which is what I would prefer to do + the extension).
I find the idea of being mortgage free extremely appealling and do not fancy having an even bigger mortgage over my head, but I am sympathetic towards my wife's point of view.
I am interested to know what other members of this site would do in my position.
For info: My wife and I are both in our mid-thirties and earn just over £50k pa between us.
The quandary is that we now have two small children aged 5 and 2, and our house is starting seem smaller by the week(It's a two bed semi in mid-Cheshire). It's not a big house by any means, but now its dimensions are really beginning to show.
My wife would like to move to a bigger house, but I would like to extend our current house or as a concession to my wife have a small extension on the rear of the house with a nice new kitchen, with a view to renting it out.
We can, if we want to, pay off the mortgage towards the end of 2013 and then start saving for a larger property(which is what I would prefer to do + the extension).
I find the idea of being mortgage free extremely appealling and do not fancy having an even bigger mortgage over my head, but I am sympathetic towards my wife's point of view.
I am interested to know what other members of this site would do in my position.
For info: My wife and I are both in our mid-thirties and earn just over £50k pa between us.
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Comments
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My wife and I currently owe approx £57k on our mortgage (house is worth around £100k to £110k),
If your current mortgage is on particularly good terms then an extension might appeal. If not, selling and moving might make sense - it'll be many years before you're free of the children.Free the dunston one next time too.0 -
What will you get by extending, and how much will it cost (taking account of overrun)? What sort of house could you get for the same extra investment (taking account of moving costs)? You sound like you are just talking about a larger living space, but will your children require separate bedrooms as they get older? Do you plan any more?
Personally, I'd be saving at the moment and looking for a larger place in about four or five years - as your eldest is approaching puberty and youngest will be old enough to play without your direct supervision.Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.0 -
What rate of interest are you paying on the mortgage?0
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