Stick with huge mortgage or downsize

hcb42

happydays_70 wrote: »

Thanks for your reply hcb42. It does get me down. I suppose I am being stupidly materialistic and stubborn. Materialistic cos it's a big house with lots of space and its in a lovely area. Stubborn cos I wanted to prove I could do it on my own and this house has roots and memories..good ones.
Realistically I would probably pay off a smaller mortgage quicker with less interest paid over the term. It does make sense to try and sell doesn't it..just nervous.

We have been there. Had a gorgeous house in a stunning village, but there was a time when we had to move, too far from work, mortgage higher than we would like etc.

We rented for nine months nearer work, quality of life improved no end, we then got a house which is actually bigger than we used to have in terms of rooms, for £100K less. So we have compromised area, but it is better for both of us for work, I thought we would miss our old area terribly, but in fact, that has not been a problem.

I agree, if you have a big house and empty rooms or rooms you only use at Christmas then it is time to rethink how you spend your income...

pinkteapot

If the house is bigger than you need, could you stay in the lovely area and just move to a smaller house? I'd think long and hard if it means moving to an unpleasant area, but I wouldn't worry too much about the house itself.

happydays_70

Yes I could stay in the same area. Just feel a bit defeated that I have managed the mortgage for 5years. Not really put a dent in it and I am no better off. Have I wasted the last 5years...hope not. If I move..pay quicker..spend less on it mortgage wise..it should be a no brainer!!

pinkteapot

Depending on where you are in the country, the house may well be worth a bit more than it was 5 years ago, and you would have had to pay rent to live elsewhere...

The thing is, yes, you might have spent more than you needed to in the last five years, but that doesn't mean you should carry on doing that.

sitesafe

happydays_70 wrote: »

Yes I could stay in the same area. Just feel a bit defeated that I have managed the mortgage for 5years. Not really put a dent in it and I am no better off. Have I wasted the last 5years...hope not. If I move..pay quicker..spend less on it mortgage wise..it should be a no brainer!!

Maybe if you have a larger than necessary house you could rent a room (or two) to a lodger once you stop receiving the child maintenance (or even now?).

You are allowed to make over £4k a year tax free with lodgers

dimbo61

If you do put the house on the market please give yourself 6/12 months to try and sell it.
Do not take another fix in case it sells as you will have ERC,s to pay if you downsize.
Also check you can get another mortgage with a lender in order to buy a smaller place!!! Mortgage market has changed a lot in last few years.

happydays_70

I have just taken my house off the market..it was up for nearly two years and didn't sell. Overpriced really. The estate agent advised against dropping the price..anyway.
I'm in a quandary and if I buy cheaper ..great. it's all the upheaval tho.

Thrugelmir

happydays_70 wrote: »

I have just taken my house off the market..it was up for nearly two years and didn't sell. Overpriced really.

When interest rates start to rise. This will put downward pressure on house prices. Catch 22. Like a game of pass the parcel. One day the music will stop. Then the UK's love affair with property will end.

Shortie

happydays_70 wrote: »

Yes I could stay in the same area. Just feel a bit defeated that I have managed the mortgage for 5years. Not really put a dent in it and I am no better off. Have I wasted the last 5years...hope not. If I move..pay quicker..spend less on it mortgage wise..it should be a no brainer!!

You shouldn't feel defeated happydays, remember you've managed 5 years of keeping things afloat and I'd say that was proof to yourself that you can, and have, done it

I am equally strong willed and nees to prove things to myself, but I recin I'd be happy with 5 years on standing on my own two feet.

Don't know if taking that out of the equation helps clarify thoughts of stay vs go?

happydays_70

Me and the kids are blitzing the house today. Estate agent coming Tuesday to take photos. Going to put on the market til Easter..if nothing happens jump on to a cheaper mortgage deal if still available. Yikes!!!