Mortgage completely paid off this year - Sell or stay ? Dilemma

Belleofthebooks

A lot of people would be very envious of being mortgage free in early 50's. Think of all the money you could save by not paying a mortgage, you could travel, buy a new car etc etc If your children are growing up how much longer will they be living at home? What happens if one of you can't work any longer unexpectedly? All things to consider before taking out a mortgage in your 50s. 

Little_Miss_Winner

Thanks for all your replies.  Lots of food for thought.  Interesting re the loyalty with mortgage so I guess that's something I don't have to factor in as much.  I just assumed would be easier / less hassle to borrow further down the line being an existing customer at the moment.

Just to answer some questions, yes all 3 children still at home currently -  Ages:- 22 working and studying, lives at home - 19 (lives at Uni but home at least every couple of weeks, another year to go an then she'll probably be back home until she find a job) and 18 (still at college) so although they will all maybe flying the nest in the next few years I would still need to factor in bedrooms.

The house we're in is as you thought @sammyjammy - three storey, 4 bed with a yard.  So a semi with more room outside, and a drive and gardens would be perfect.  We now have 3 cars which we didn't when just the 2 of us bought this house - we didn't have any !!  All our renovations in this house were done earlier on, so the brand new kitchen is now nearly 20 years old etc, we were looking at the prospect of staying here and maybe knocking dining room into kitchen and extending a little at back to make it square.  But although then we would have a large kitchen diner (my ideal) the yard outside would be even smaller, and the expense of doing all that work (in my mind) would be better spent on adding to a mortgage and just moving into something more suited to our needs now. Garden, drive, bigger kitchen.

We will have no other debts once the mortgage is paid off.  Have managed to buckle down and reduce everything through we have also been supporting the children (x2) at Uni etc. We currently have around 22k in savings, just sat in ISA's

Really appreciate all your advice

Snookie12cat

Belleofthebooks said:

A lot of people would be very envious of being mortgage free in early 50's. Think of all the money you could save by not paying a mortgage, you could travel, buy a new car etc etc If your children are growing up how much longer will they be living at home? What happens if one of you can't work any longer unexpectedly? All things to consider before taking out a mortgage in your 50s. 

What is the point of being mortgage free in a house you do not like/isnt suitable? I live mortgage free now in my late twenties and it really is over rated. The mortgage rates are low and therefore I am taking on a large mortgage and moving to my dream house.
As long as you are mortgage free by the time you want to retire, then there shouldnt be an issue.

getmore4less

We currently have around 22k in savings, just sat in ISA's

I would not be digging too far into that with for a new property.

What are the pensions looking like?

Previous numbers are probable not far off.

Even with those bigger salaries it is looking like you have found ways to spend it and more recently that's not been for the house.

What's your current mortgage payment?

Can you bridge the gap for a new mortgage.

Little_Miss_Winner

Belleofthebooks said:

A lot of people would be very envious of being mortgage free in early 50's. Think of all the money you could save by not paying a mortgage, you could travel, buy a new car etc etc If your children are growing up how much longer will they be living at home? What happens if one of you can't work any longer unexpectedly? All things to consider before taking out a mortgage in your 50s. 

I know I am very blessed and grateful to be in the position we are in. But not without a lot of hard work and graft and living frugally over the years (I only worked 12 hours per week when I had 3 children in quick succession and it was hard back then financially)
We can only travel as much as work allows - as a family we have never forgone an annual foreign holiday - only for 2 weeks and the odd city break per year.  Cars don't excite me at all, husband maybe but nothing very extravagant.

I suppose I am also thinking with the money we earn and the lack of mortgage I just don't want us to blow the extra savings on this and that, whilst we are living with a back yard when in retirement would love more greenery/gardens etc..

It does scare me though when, as you say, what if you can no longer work etc, but then I thought that 25 years ago when we took this mortgage on! I could always sell again and downside ?

Thrugelmir

Perhaps become mortgage free first. Then take the opportunity to use the freed up money to build your cash savings and pensions. There's no rush to make instant decisions. Being mortgage free does remove one of life's major potential worries. 

paulj2021

I’d pay it off, and then enjoy being mortgage free for a year or more before making a move, in the mean time take the money you would have paid for your mortgage each month and put it into savings or an ISA or similar, build up a nice lump sum which might pay your future moving expenses 

Little_Miss_Winner

Keep trying to answer using the quote facility but keeps telling me body is 9 characters too short - driving me mad !!

@getmore4less:
Both been paying into pensions since we started work soon after school - my private one was transferred to NHS which i still currently pay and never took a break, his is now with a private Wealth Management Co (through work)  I admit I am a little head in the sand with pensions, don't really understand them. All I know is I have 2 with the NHS.  Was advised a while ago by same company as my husbands to stay with NHS

Little_Miss_Winner

@getmore4less

Even with those bigger salaries it is looking like you have found ways to spend it and more recently that's not been for the house.  Yes and that what worries me, we are spending willy nilly and have taken our eyes off the ball because we could! 

What's your current mortgage payment? £184 ( i know!!) but with home improvements taken over the years (DG Windows/doors, kitchen, loft extension) totals £400 including mortgage.
Can you bridge the gap for a new mortgage. Yes and maybe even overpay with a bit of structure to finances.

Little_Miss_Winner

Thanks for your replies all.  Sorry about the answers above lol - quote facility drove me mad.  And the size of that emoji !!! oops