Doubling Mortgage at nearly 40 - is it worth it?

chelseablue

natman wrote: »

This post has probably helped me the most.... That someone out there is as bonkers as I am:j

Seriously though I am interested what was your -
£92,000 monthly payments and over what term?

what is your
£230,000 monthly payments over what term please.

Just interested in the comparison - have you more income coming into the household now?

I dont you see, well I do have the nursery payments coming to an end in 7 or 8 months to offset the total but no more income.

On the flat I pay £470 a month and have 19 years left.

When we move we will be paying £720 a month, but that's over 34 years :-0

We're going for the maximum term in the beginning while we are paying childcare fees, I don't plan on having a mortgage for 34 years.

When I bought my flat I was single so it was just my money.
So yes now I have a partner there's more income with his salary, that's the only reason we can move from the flat to a house

_CC_

natman wrote: »

From an investment point of view what is better? To have a house worth £205,000 owing just £77,000 or having a £280,000 property and owing £150,000. Or is it just the same. Though monthly my payments would increase by around 30%.

This what spreadsheets are for. It's an important decision so why not spend an afternoon working it all out and seeing which one makes most sense to you (not just financially but also lifestyle etc)?

You have to factor in the opportunity cost of the extra money you sink into a larger mortgage. For example, if the larger house means 29 years of an extra £150 per month, what could this amount produce if invested elsewhere such as a stocks and shares ISA or pension (remember tax relief). You could reasonably expect a long term return in the region of 7-8% in equities, but then again it's not leveraged like a mortgage.

Also factor in the high chance that borrowing costs will increase over the medium to long term, affecting mortgage repayments.

natman wrote: »

My plan to retire early is achievable in my current house as I would pay my mortgage off in say 15 years.

Would you not still have a fair level of outgoings even without a mortgage, regardless of what option you take?

getmore4less

Get the bigger house and birth control

Another child will change the finances considerably.

Just make sure this will be a single move get it right moves eat cash.

Waldorf_Statler

Thrugelmir wrote: »

It's a home not an investment. .

Indeed, hence my closing remark on my previous post.

Nevertheless the OPs question was:

"From an investment point of view what is better...?"