£192,737 mortgage!

happydays_70

Yes, the above amount is correct.
I am working full time and have two children 11 and 8.
At the minute I am on halifax variable of 3.99% for 27 years..which takes me to 68 yrs old...omg...sounds horrendous when I write it.
I have managed this situation for nearly 5 yrs. I had my house on the market for 2yrs but no interest. I have posted on another forum about should I try and move to a smaller, cheaper property or stick it out?
Having read comments on mfw I can do it but will it be worth it in the long run?
I am debating to go on halifax's fixed for two yrs at 3.14% and reduce the term to 24 yrs. Chipping away slowly.
If I put it up for sale again I have to stay variable at 3.99%
I don't really know what to do

happydays_70

Any comments or thoughts greatly appreciated

Calfuray

Okay, so if I'm reading this correctly, you are stuck over staying in the same place and fixing and trying to reduce term etc, or move to a new house?

I think the key is looking at some houses, and figuring out how much your new house would be - including stamp duty/valuation fees/solicitors etc - any cost you can think of, and compare it to what you will be able to sell your house at, after fees etc. That would be a good starting point.

endoftherainbow

Some thoughts, which may or may not help...

My personal experience/opinion is that the first few years of a mortgage are a struggle, but it usually gets easier. House prices go up and down, but as long as you bought the house as a home trather than to make a quick profit, you should be ok in the long run. Paying of the mortage at 68 does sound scary, but as it gets easier you can overpay and reduce the term.

If you have reasons to move home and a smaller mortgage would make you feel more secure it may give you peace of mind. I'd check the current property values and estimate the cost of moving to ensure you wont be left out of pocket. If negative equity is a possibility, moving may not even be an option.

happydays_70

I know I can be good with money..I have been. I think I'm having a wobble. I just want to do the right thing..you are right..I need to calculate if the moving costs etc would outweigh the benefits of a cheaper property.
Thanks calfuray and endoftherainbow

MallyGirl

Hi, your figures are similar to mine except we still have more to pay on our extension. If you can manage now I would stick with it - as long as you like the house of course. Moving is expensive in terms of fees and stamp duty so you would have to drop quite a bit in price to make an appreciable difference.

happydays_70

If I tie myself into a fixed rate for 2yrs I will reduce the term by 3-4 yrs BUT can't move for 2yrs either without penalties.

thescouselander

If it were me I'd concentrate on trying to pay the mortgage down. Moving will only cost you money that could have been put towards repaying the capital on your current mortgage. Also are you sure a smaller home will suit your needs? There's little point in buying a smaller house if you find you need to move again shortly afterwards when you find there's not enough space.

Go for the fixed deal if it will save you money but make sure you take account of all the fees etc as these can add up. Also have you considered any other lenders to get the best deal overall?

Just a final thought - a mortgage of £192K doesn't seem that extreme by todays standards.

happydays_70

Thanks thescouselander...I love where we are but I just wish I had more disposable income. Moving would cost I know plus anything I buy cheaper would need to have money spent on it.

sleepygirl126

you're in a very similar position to me hon....I have thought long and hard about what to do and I'm going to stick it out. My son and I are very settled, and by the time I've tried to sell the house, pay moving costs etc, I just feel that it makes more sense to stay here

mortgage £152,572

happydays_70

It is a challenge to stick it out. I read the threads and I do think k I can do that...then I think...do I really want to?? Getting on my own nerves.