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?
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.
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.
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.
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.
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.
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.