Bigger House

boltonian

I am looking to buy a bigger/more expensive house.

I still owe around 80k on my place (worth approx 140k in todays market). I have 12 years to go.

Based on buying a new place at approx 250k, if I keep it over 12 years the monthly payments will leave me broke.

So the question is, is is possible, and has anyone done something similar where you buy a new place and put your mortage back up to be paid over 20 or even the original 25 years.

Any thought on this?

Seems sensible, but would be depressing to add another 13 years or so the the repayment.

Thanks

Dave_Ham

You can increase term, but will be dependent upon the age of the eldest applicant.

Most lenders go to 65, some go to 70 and some go to 75 years old although this will depend upon your income/employment type and any provision for income into retirement (if this is the case)

boltonian

Thanks.

I am 36 so 'sadly' got plenty more years of paid work ahead of me.

So next question, is it a sensible thing to do?

Dave_Ham

No-one knows your own situation like you do, so I imagine you already know the answer.

Everyone strives to be mortgage free as early as possible to reduce cost of repayment, however being mortgage free on a 1 bed flat house with 3 kids may be counterproductive.

Upsizing when prices are as they are should prove to be beneficial but with the uncertainty out there who knows..

Good luck

boltonian

Thanks. Probably the right thing to do, but just sad to think of having to shell out for longer. Hey ho!!!!

jackomdj

It is what we did 2 years ago, although it went up to 24 years due to age.

We do overpay each month so will end up paying it off a lot quicker.

We have a beautiful spacious house now, so to me worth going back a few years in terms of when we will be mortgage free.