To downsize now or wait it out? Just me and dd.

[Notnastypasty]

I've lived in my current home for almost 5 years - a year after we moved here my exh walked out. So me and DD (9) have been here, just us two, ever since.

I've been fortunate enough to be able to buy exh out of the house but he has his name on the mortgage til dd is 18 as the mortgage is high and the bank won't lend me that amount on my own.

The house has 4 bedrooms and 3 reception rooms that we hardly use. I would like to downsize to a 3 bed and downsize the mortgage so I'll be able to take it over in 9 years time. It will also give me a couple of hundred pound extra a month.

A couple of family members have said I should stay here as long as possible as the house price will rise and I'll be in a better position in 9 years. I'm so confused!! Any experience or advice please?

[Ttbb]

Or interest rates could rise and the housing market could go off a cliff eventually resulting in you being unable to make payments and loosing everything. Housing is not a smart investment, it's a practicality. If your current arrangement is not practical then look elsewhere.

[Angryosaurus]

I’d downsize to suit your needs 100%

[BobbinThreadbare123]

Downsize. Who knows what will happen with the housing market. You're also heating, cleaning and maintaining a property you're not fully using. I imagine you can reduce your council tax too. I'd be downsizing and putting the extra few hundred pounds each month into a savings account for your little one.

[NapQueen]

Downsize. Could you go down to a 2bed to secure it alone even sooner?

[IceFall]

I’d downsize

[Mosaic123]

Or rent a room out to help you with the mortgage? You get a tax free amount of income if you share facilities with your lodger.

[GrockleBocs]

I'd downsize in your situation. You don't need to make capital or take a step up the ladder. You need to live a secure, happy life now while your dd is young. You aren't talking about selling up and renting.

[MotherCupboard]

Definitely downsize. It'll cut your utility bills too. Do what suits you, not what your family think you should do.

[Firenight]

I would downsize, cut bills and if you can get your ex off the mortgage, even better.

[missyB1]

Downsize without a doubt. Bigger houses equal bigger bills and more maintenance. Who knows what will happen in the future? Do what is best for you now.

[Reppin]

I don't get this, he is still on the mortgage, but you already bought him out? Is he on the deeds? You obviously can't afford the house on your own so why not get a house you can afford? It would mean a better quality of life for you and your daughter, but also a clean break from your ex.

[OliviaBenson]

Would you even be able to downsize if your ex is still on the mortgage? Would he still need to be on a new mortgage? I'd be very surprised if you were able to do it.

[Notnastypasty]

Thanks for the replies. I paid off my exh but he agreed to stay named on the mortgage until dd is 18. We had a solicitor draw up our divorce agreement and it was all sorted out then.

If I downsize I'm more likely to be able to take over the mortgage myself in a few years time ( I pay the mortgage myself but the bank won't lend me such an amount on my own).

OliviaBenson - can I ask what makes you think I wouldn't be able to do it?

[QuiteUnfitBit]

But the cost of moving is quite high. This depends on the difference in cost between the house you are selling and the house you are buying. It may be better financially to rent out two rooms, as you get c£7k income tax free.

[JoJoSM2]

I’d lean towards downsizing too. People might say that your house will be worth more in 9 years but: you’ll pay thousands in additional interest over that time, interest rates might rise, you’ll spend lots more on bills + the house will just get a lot more dated in that time so the value might not hold up that well.

If you downsize, you’ll pay less mortgage and bills. The leftover money can be used to eg top up your pension or put into ISA’s etc so you actually build up lots of money instead of living in a property that’s a real drain on resources.

[KitKat1985]

I'd definitely downsize in your circumstances.