Mortgage free or bigger house?



  • MichaelDHMichaelDH Forumite
    154 Posts
    Fourth Anniversary 100 Posts Combo Breaker
    JackeeBoy wrote: »
    Not too sure I understand this....If I was buying a house for £334k, I would have to take out a £290,000 mortgage which is more than my initial mortgage and what I have now.

    Yes, sorry, I got my sums mixed up! :eek:
    Starting Balance August 2016: £170,199.00 | Remortgaged August 2018: £212,000.00
    Current Balance (15th February 2019): £209,278.85 :eek:
    Target: Balance below £170,000.00 by August 2023 :)
  • TropicallyTropically Forumite
    427 Posts
    Sixth Anniversary 100 Posts Name Dropper
    While I'm not a fan of the show because it is a bit too American reality, you might enjoy and find motivation with the KonMarie method, or at least your wife might! Has she read the Life Changing Magic of Tidying?
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
  • lindenslindens Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I wouldnt want to live in a 2 bedroom house with 2 small children. A loft extension only extends the bedroom space. I find that living space is more important with children. if this is not possible to extend living space then i would move.
    You're not your * could have not of * Debt not dept *
  • VDOT47VDOT47 Forumite
    277 Posts
    I agree with the points above re living space vs number of bedrooms. For us, the other important points will be moving from a semi to a detached house, and hopefully being in a quieter part of town.

    Anyway, I'm getting side-tracked. As someone else above says, even if you extend the term of the mortgage back to 25 years, you'll still be paid off by 55 and you can bring that date forward by overpaying or re-mortgaging onto a shorter term at some point in the future.

    MrSaver96 - think yourself very lucky to live in a part of the country where housing is so cheap. The £290k quoted above for a 2 bed semi sounds very average for the south-east. A very average 3 bed semi will cost you £380k around our way, and for the type of house I'm talking about above (a simple 3/4 bed detached in a reasonable part of town) you're looking at upwards of £450k! You could probably buy a 5 bed mansion with lots of land in a lot of the rest of the country for that amount!
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (End 11/19) £226,790
    End Date November 2039 Original End Date February 2042
  • billy2shotsbilly2shots Forumite
    751 Posts
    500 Posts Third Anniversary Name Dropper
    I faced the exact same dilemma.

    We have a 9 year old and 6 year old.
    My wife and I are very late 30s.
    We have a joint income of £52,000

    We have/had a 3 bed bungalow valued at £330,000.

    We looked at moving last year but decided to stay put and do a loft conversion and extension with our savings and taking out more lending. At that point in time we had £60,000 left on the mortgage.

    I wasn't convinced that the final outcome would be worth the near £100k outlay for the new works and completely modernising the whole house. Regardless of the cost the layout and look of the house would always be compromised.

    I decided to pay off the mortgage completely and then begin saving again with a move or refurb in mind for 4-5 years time.

    I was mortgage free for 2 months before getting twitchy again. By this time I had completely ruled out the refurbishment so it was time to move or stick with what we had.

    Moving won out and for the following reasons.

    - house prices peak and trough but they trend up. Waiting longer would probably mean a home we liked would be out of budget in 5 years time.

    -move now and enjoy the time in a new bigger place. In 5 years time the kids would be older and more independent and spend more time out or in their rooms. It makes sense to have the bigger family areas earlier to enjoy now.

    - Thinking ahead and looking at senior schools. We decided to be closer to these for when the kids make their own way there.

    The downside is that the move is going to cost a big chunk. £555000 which means taking a mortgage of £215,000. That's a big eye opener going from mortgage free to £900 a month for the best part of the next 30 years. The master plan is to be paid off in the next 15-20 years.

    In the end life is for living. We move in the next 2 weeks.
  • JackeeBoyJackeeBoy Forumite
    229 Posts
    I've been Money Tipped!
    Thanks all for the replies and advice. Very helpful.

    With us planning for a second child and still paying nursery fees, moving out any time soon is probably not realistic. In the next 3-4 it's going to be something we're in a more realistic position to think about.

    I've also been thinking about what is most important to me at that's to semi-retire early. For a long time I have not been well. Nothing that has been diagnosed but I have suffered from fatigue and it's a constant battle for me, especially when it comes to work.

    My motivation has been all but killed off and I find myself in a state of inaction on too many occasions, staring at my computer think that I can't be bothered. I need a break.

    My fear is that I'll lose my job and won't be able to find another so whilst I have some fight in me, I'm chipping away at this mortgage as fast as I can.
  • ButtiButti Forumite
    5K Posts
    Part of the Furniture 1,000 Posts
    I would lay a fairly hefty bet on nothing happening in terms of tightening up loft conversions. There is no need, it is your house, they already take account of the impact on neighbours in planning permission (that is why you are not usually allowed dormer windows in loft conversions facing to the front of the house).

    The focus of building regs is on the structure of the house, basically how much extra loading it can take, and fire. They want to see that any loft conversion is safe and can be accommodated in the loading. They also want to know in the event of fire that you can get out or get rescued. If I were doing a loft conversion I think I would want one of those metal ladders that roll out.

    Jackeeboy, I wish you luck with your health and with the future. Chipping away at the mortgage is good, it always gives you more options.
    Debt LBM (08/09) £11,641. DEBT FREE APRIL 2021.
    Diary 'Butti's journey : A matter of loaf or death'.
    Diary 2 'The whimsical tale of the Waterbed of Debt'
    48% off mortgage

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  • pinknsparklypinknsparkly Forumite
    522 Posts
    Seventh Anniversary 500 Posts Name Dropper
    Given that you say you're not going to be in a position to move for 3 - 4 years, I'd suggest keeping a close eye on what comes onto the market in the next few years with a good idea as to how much of a mortgage you could raise. If the perfect property becomes available at a decent price you may be able take advantage. Otherwise, in 3-4 years time you'll either have a second child and know the gender (i.e. can they share a bedroom?) or not have had one. You may be working from home much more, or not at all.

    Personally, we are also aiming for early retirement and have opted for the cheapest property that met our needs and intend to stay put without ever up sizing. That said, ours is a 3 bed which gives us more room for maneuver than you!
    MFW2022 challenge #99: £2,081.15 / £4,200
    MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: £3,064.78 / £29,256.50
    Initial MF date (18th Dec 2018): Jan 2054 Current MF date: Aug 2046
    Last updated: 23/04/2022
  • getmore4lessgetmore4less Forumite
    46.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Check what the cost and financial benefit will be with the loft.

    if staying and is neutral or gains a bit that is OK but if you still end up moving do you want the disruption.
    I would want a decent gain to put towards the next one.
    Outstanding mortgage around £246,000
    House worth around £290,000
    Monthly payments of £1,472
    16 years left
    LTV 85%
    £246k 16y £1,472pm that's 1.77% good rate for 85%

    getting to 80% wont change much 75% might get some savings on the next change.

    You can get better rates saving so just do that for now and you can make the decision when you ahve enough to move or do the loft

    borrowing more will take you over 85% and into higher rates.

    Either of you 40% tax payer up the pension to take advantage of that now.
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