Mortgage free or bigger house?

Nathaniel_Essex

Hey guys, wanted to get your thoughts.

I live in a mid-terrace, two bedroom property in London. Purchased the house 3 years ago and since the prices have rose significantly. The mortgage has 17 years left and I'm keen to get it completed as soon as possible as I work a high pressured job and can't wait for the day I don't have to worry about a mortgage.

Live the house and location but since we moved there has been a number of changes: we now have a young child, parking has become an issue so I would love my own parking space and my elderly neighbours have moved out leaving me with noisy council tenants.

The above is outweighed by the benefits living here at the moment but was thinking if we had more children and needed a bigger place, house prices would be so high it will make it difficult for us to jump ship. Also, it would likely mean I would have to extend my mortgage I'm order to afford somewhere bigger.

Main issue is having a third bedroom. What would you suggest?

bexster1975

Hello

This is really a judgement call. I wouldn't choose to live next to noisy neighbours any longer than was necessary ( unless I planned my own brand of payback - which seems unfair on your neighbours the other side). Could you *whispers* leave London? Even to the commuter belt if you need to stay in your current work location?

I ask because if the house has gone up in value as you say, you could likely get a three bed somewhere and possibly even reduce your mortgage if you can use the gains in the value of your current place. It's just an idea.

A word of caution, if you work in a high pressured job you are not likely to last the 17 years in it. I'd consider if I wanted to change pace. Maybe not right now, but in the medium term.

A conversation about whether you want more kids is also a good idea, as it will impact the size of house you might look for if considering a move.

I'd get a valuation on the current house, consider where I'd be willing to move to and look at the price of three beds and see what your options are.

Good luck whatever you decide

Bexster

DigForVictory

Start the escape plan - a London residence is worth a startling amount - if you can work almost anywhere else, the property around you suddenly becomes massively affordable.

Indeed, relocate shrewdly & you can have four bedrooms & a paddock and still be mortgage free. But plan like a mix of WW3 & a wedding, get every detail you can think of sorted up front & then escape to elsewhere in the country!

Indeed, do think of Moving North. You can commute in & out of Manchester reasonably easily & the property prices are easily one digit off the London places & some areas two.
Or just within reasonable reach of London (but not daily commute range) & see how much your money will get you let alone Quality Of Life.
Best of luck!