Downsizing / Buying Cheaper

pollyanna24

I live in a not bad area within the M25.

Ignoring my signature (as it's from Zoopla), I'm guessing I would get at least £400,000 for my house.

The cheapest houses in my area (not brick, but steel or similar frames) are £315,000 or £320,000.

Although on face value, this would knock £80,000 off my mortgage, this doesn't take into account selling and buying costs.

How much realistically do people think I would save monthly mortgage wise by moving to a cheaper house? Sometimes I think all I do is work to pay the mortgage(s) and it would be nice to spend more nice with my sproglettes (I'm a single mum).

Would it be worth it? I don't know. I do love my house, but just can't decide.

gycraig_2

Impossible to say just do a mortgage calculator for the new amount

pollyanna24

gycraig wrote: »

Impossible to say just do a mortgage calculator for the new amount

Thanks. I just meant I wasn't sure how much the selling and buying costs would all come to, so not sure what the new mortgage amount would be.

At the moment my mortgage(s) are about £185,000, so it's not as clear cut as just having a £105,000 mortgage as it costs to move house.

Mickygg

Roughly solicitors fees £2k, EA fee £5k (much cheaper if you use on line than traditional, but I've assumed high street EA), stamp duty £6k, removal company £1k, plus any effect on mortgage early part payment if any.

For £80k unless you are desperate I wouldn't do it.

pollyanna24

Mickygg wrote: »

Roughly solicitors fees £2k, EA fee £5k (much cheaper if you use on line than traditional, but I've assumed high street EA), stamp duty £6k, removal company £1k, plus any effect on mortgage early part payment if any.

For £80k unless you are desperate I wouldn't do it.

Yeah, does sound like a lot, doesn't it?

I can afford where I am at the moment. Maybe I'll Just keep going until I can afford somewhere decent mortgage free. I don't particularly want to live so close to London, but I am born and bred, so all family around here and I don't really know any different, plus it's harder to move I think when you are by yourself with no partner as it's one thing to move and know no one but your partner, but another thing to move and know no one, but your kids.

I work in London which is also a factor (travel costs awful, but not as bad as it would be if I moved further out), but this may change in a few years, so I can move further out.

Choices, choices eh? As least I have some to make eh and it's not all decided for me?

pollyanna24

I'm thinking (taking out the emotional bit of not wanting to move), I could have simplified the question to just, "How much does it cost to sell a house and buy another one?" Haha.

Red-Squirrel_2

pollyanna24 wrote: »

Choices, choices eh? As least I have some to make eh and it's not all decided for me?

Well, you have a house in London worth 400 grand, more than 50% is equity and you earn enough to pay the mortgage and bills etc.

That's not so bad, really!

The London housing market is crazy, but it sounds like you're one of the few who's doing OK in it,

AnotherJoe

Potentially there other hidden costs, such as renovating kitchen and bathroom.
Also, inflation is rising which will gradually wear away at the size of your loan, plus if house price rises continue, even modestly, then dropping to a house 3/4 of the price will lose you a 1/4 of the appreciation e.g. If your 400k house rises by 25% to £500k the 300k house will rise to 375k. So that's another 25k trimmed off long term.
So I also wouldn't do it unless financially you really had to. Do you have any pay rises or promotions in prospect that will make paying the mortage easier ? Are you in a position to remortage to a lower rate and save money that way?

hazyjo

I'm doing it (no kids though).

Hopefully (roughly) knocking at least £50k off a £100k mortgage. Was aiming for mortgage free, but the prices have been rising...

But then I'd not buy a cheaper house in the same (or worse) area. I'm moving out to Leigh-on-Sea which is lovely (actually prob much nicer than where I am).

I currently pay around £600pm mortgage and hope to pay half of that. My fares will double though, so nearly £140pm extra. The C2C line is cheaper than others that go to say Brentwood or Billericay though.

Leigh-on-Sea was voted the happiest place to live in the UK last year (even beating Harrogate). Found this nice description of the area on some church website the other day: http://www.lrbc.org.uk/about/leigh.php

There are several nice houses in your budget.

Big lifestyle change, but really not that far away. Great life for you and the kids. Tonnes of stuff going on, and very friendly and a great community.

I really should work for the tourist board there lol!

Jx

AdrianC

Moving to a new area with kids is going to get you into social circles faster than not having kids - you'll meet other parents through them.

If you don't particularly want to be near London, and are feeling a prisoner to an M25-size mortgage, then moving further out really would solve both problems in one stroke. Which corner of the M25 are you? You wouldn't need to move far.