Mortgage free or more space dilemma

WobblyJelly14 · 24 March at 9:27AM

We’re currently mortgage-free but considering moving to a bigger house as our current home is getting too small for our growing children (1&3). To do this, we’d need to borrow £275,000 over 35 years. This mortgage payment would work out at £1235 a month.

Once the mortgage and all bills/food are paid, we’d have around £400/£500 left each month for savings and emergencies. However, as a buffer we will have around £18k saved.
Right now, we’re on one income as I’m a stay-at-home mum, but I plan to return to work part-time in 3-5 years, which would ease things financially. We would also shorten our mortgage term then. That said, it’s hard to ignore how comfortable it is being mortgage-free—we don’t have to worry about unexpected expenses or big financial shocks.
Would it be crazy to sacrifice that security for more space? I keep going back and forth between thinking it’s worth it for our children’s sake and worrying that we’ll feel too stretched. However, I don’t know if the top of our budget is wise.
Has anyone been in a similar position? Any advice would be really appreciated!
We are both 37.

ps: just to add, we don’t live like we are mortgage free currently. All money is saved - however, it’s nice knowing we have the option to go on fancy holidays as the kids get older and can appreciate it more.