Bigger house or no mortgage

Mission193

Hi all

Something has been going around in my head and need some advice.

I have a 2 bedroom terraced house and there is 3 of us (1 baby).

I brought my house 5 years ago for 81500 since then i have reduced my mortgage down to 40000. Just got it valued its worth 135000

My main focus is to bring down the mortgage further so i have no mortgage. (Which will be nice).

However my wife wants a bigger house. I want no mortgage for financial security. There is potential to extend and a good school for our baby is right in front of us.


What do you all think?

I hate paying interest on anything.

Hoploz

Is your family finished? If you have a second child it will be a squeeze.

Ultimately you need to work it out between you. No mortgage is attractive and gives peace of mind. But a bigger house is likely to make more money long term. I hope to downsize when the time comes, to be my pension pot. I have enough equity to halve the size of my house and still get a bug enough place to live eith cash to spare. Others have different arrangements.

hcb42

personally i would also do what Hoploz states, but there is no right or wrong answer here

car0line123

How much would a bigger house cost you? How much would your mortgage be (if you include all costs)? and how much would you pay monthly?

Then compare with how much space would you gain by building an extension, and the prices of 3 beds or more in your area.

If it is reasonable, I would really consider going for a bigger house now. I prefer having some space, and moving with a baby is the ideal time: no rush to find a perfect house (perfect within budget), close to the right schools etc...possibly in the same neighborhood you are now.

Even if there was a property crash, if you are moving now for the long term, you will be fine anyway. I am in the process of moving, so I am going for the bigger mortgage option myself!

Lord_Baltimore

For me, removing that ball and chain they call a mortgage is more important than taking on additional commitment. Being free of the financial burden will have untold benefit to your mental health and, at the moment, you don't need a bigger place.

The aspiration for bigger and bigger property seems to be hard wired into some people; the important thing is having what you need and you don't need to be layering on more financial responsibility. You can live a little instead!

It's all a matter of opinion of course and ultimately you and your wife must make your choice together. People see things differently and it comes down to what you want out of life as a family.

Noctu

How much more room could you gain if you extended? Are there any other niggles about your current house which might be resolved with a new house, or is it pretty much suitable otherwise? (eg parking, garden)

greenface

I bought my 2nd house 3bed garden cellar parking NEEDED WORK DOING for the same price as I sold my 1st house 2 bed on street back yard and NO WORK NEEDED and started to do that one up again . (and sold that for similar than the one I am in now ) had then both for 10years. edit to say you dant always need a bigger mortgage if the right property is there

dimbo61

Your age and income/job are important.
Does your wife want more kid/s ? She will do most of the care.
Can you afford a bigger house, mortgage, council tax, gas/electric, etc
How big a jump is a 3bed semi or detached house from your current 2 bed where you live ?
Only you know the answers

Argghhh

we looked at moving changed our minds as house is enough for us and can be mortgage free in 4 yrs

mustang121

In two more years I will be in the same situation as you. I have a three bed end-terrace and a relatively small mortgage.

At the moment I'm toying with the idea of staying put, doing up the house, pay off mortgage and then maybe buy another and rent this one out.

Johnandabby

Two kinds of people in life - those who are content with what they have, and those who are always looking at the next house/car/job etc.

I'm in the second group, and it seems that your wife is too. Even though I will pay off our mortgage by the age of 40, I am very likely to still look to upgrade and extend this further.

However, my first thought would be to investigate whether extending your existing house is worthwhile. If everything else about the house and location is good for you, then look to see if you can provide additional space - another bedroom at least, and extra living space is always useful.