I am 37 years old mother of one and i have 13 years left on my mortgage. I have been given the opportunity of the most amazing house which on a monthly cash flow level i can afford but it would mean taking out another long mortgage.
Just wondering - how old are you, how much is your mortgage (total cost e.g. you bought for £120k) and how long have you got left to run on your mortgage.
37, dh is 31, mortgage is 100k and 29 years left to run. For us it’s worth it as it isn’t a huge mortgage so we could afford it if income dropped. I think every situation is different. My mum has a tiny mortgage with 5 years left and she is 70 in April!
Something to consider is the benefit system is just about to change, no longer will income support be a safety net for mortgage interest; they will signpost you to an additional loan, so be sure you will be able to pay the mortgage over the full term or have robust contingency arrangements.
In your position I’d think about whether the current house is good enough, what your pension provision is, at what age you hope to retire etc.
DH and I are the same age as you and when our current fixed term runs out in 4 years, we’ll pay off the balance. Personally, we have no desire to change as the house and the location are great.
However, if you’re current house doesn’t suit your needs or the location isn’t right, then I would consider taking out a longer mortgage to move somewhere more suitable. Probably aim to pay it off before 60 in case you don’t fancy working forever.
I think most lenders are happy for you to go to 65. We borrowed back on our mortgage a few years ago to fund an extension and ours runs to DH's 65th birthday month. We'll massively over paid it and will pay the rest off well before then though.
What would this house be giving you that you don't have now?
I don't think looking at what other people do will help a great deal. We looked a moving up the property ladder a decade ago (to a lovely house - quite a step up) but decided against it and extended instead. We could've afforded the mortgage repayments but the cost of maintaining the house to a good standard at the same time was a bit scary and I suspect we would've ended up with a big cold house that constantly needed something doing and never looked properly homely.
Now 44 so glad that we decided to stay put. Paid off mortgage when I was 41 (we had enough savings to do that before but it didn't make sense). Max mortgage we ever had was £120K (house was bought over 20 years ago for £95K but we took out extra for the extension - paid it down, did another one...we've spend at least £150K on the house (beyond simple decorating/maintenance) over the years).
If we piled together the rest of our savings/investments (excluding our pensions) and maxed out a mortgage we could have a house worth 3x as much. As much as I would like x, y and z - it just isn't worth the hassle and expense of moving for (and we are maxed out in terms of possible extensions - house is well and truly finished). Our home isn't our dream home - it's nice though, and enough.
Have a friend the same age with a similar income to us who took mega mortgage for another 30 years about 5 years ago. Their house value has risen massively in that time (London - we're not in London). I have no doubt that they will end up considerably wealthier than us in the long run!