WWYD Mortgage Decision

NElass

In a few months my 5 year fixed rate mortgage is coming to an end. I am torn about what to do next.

I bought this 3 bedroom semi detached house with my now ex-husband. We have no children and he has no financial stake in the property. It is unnecessarily big for me and my cat. It is also 3 doors down from my ex mother-in-law (and where my ex is now living).

I like the house, and have had no problems here. The repayments are affordable, and I have been overpaying as much as I can. It is a second hand new build on a 'bad' estate. I feel like I got a lot of house for my money but it might be difficult to sell.

I am convinced that interest rates can only go up from here which makes me think I should take out a long fixed rate (10 years).
But I also want to move on with my life and I will likely want to move before 10 years are up.

I am probably over thinking this. But what would you do in my situation?

Take a 10 yr fix and knuckle down for the long term. Pay a hefty early repayment fee if I need to move sooner.

Take a shorter fix (5 yrs?) and hope rates remain fairly stable.

Do not fix and see how it goes.

Move now into a smaller property that is just for me and the cat.

Something else?

D_M_E

My choice would be to look for a remortgage to a deal which allows it to be ported to a new property then sell up and find somewhere else either same size or smaller.

Kynthia

Find the best 3 or 5 year fix that is portable. Then when you're ready start looking for a new home.

Rambosmum

I'd get a portable re mortgage deal. If you move to a property more expensive than your current one you'll get a smaller, second mortgage account to make up the difference. The only issue is if you buy a cheaper property, but depending on the LTV you have in this one and the value of the new one it shouldn't be a big issue.

Red-Squirrel_2

I’d start looking to move now. Get some estate agents in to value, see a mortgage broker, start scouting what’s on rightmove.

If you start the process now you might well complete within a few months just as your deal ends or shortly after.

A few doors down from your ex and his mother is no way to live! :eek:

SmashedAvacado

If rates go up prices will go down and you won’t be able to sell in any event!

bouicca21

In the early years of my divorce I would not have been able to live anywhere where I might have run into the ex. Now I don't care. factor your pain into your decision, having him close at hand might make it take longer to heal, but it will heal.

hazyjo

Red-Squirrel wrote: »

I’d start looking to move now.

Me too. Sod that, wouldn't want them living up the road, and I'd want to be off before prices get lower and it's even harder to sell, plus I would want to move on with my life. Just seems like you're living in limbo. Wouldn't downsize too much - you may meet someone else, plus it may be handy to keep equity in a house so you can downsize at a later date. All dependent on your age of course...

AdrianC

This isn't just a single question. It's a two-parter.

1 - Stay or go?
This has to be the major one - do you want to be three doors from your ex and the ex-MiL, kicking around in a place you think is too big for you? And that's before any emotional baggage around the ex-marital-home versus making a new start in YOUR place...



2 - If stay, then what to do with the mortgage?