AIBU to go to the top of our budget for a bigger house?

Did you already do a thread on this op? Guessing it really is a dilemma for you! I would stretch myself for a bigger place but I recognise we really are all different.

How many bedrooms in each? Where you are now and looking at?

What are they supposed to do? Well, I guess they could also get a job. I did and built a career. Then gave it up and went to uni at 32, worked 16h a week at my university reprographics department which more than covered outgoing costs on top of a full maintenance loan (and I still think of it as the best job I have ever had). Financed my own driving lessons and bought my first car outright. The world didn't stop spinning. And when it came to postgrad jobs, I was seen very favourably due to the wealth of experience I had prior to university degree.

Do you really need a bigger home? Could you clear out clutter?
Remember that as children age they often have less stuff - bulky toys etc get replaced with smaller items and they then have more room.
Being mortgage free allows for more experiences which cannot be replaced. If you do return to work, you can have even more fabulous experiences.
You could also wait until you do return to work and re-evaluate your situation without stressing yourself in the mean time.

They absolutely are. We’ve been mortgaged til that age for the last 8yrs at all the big banks. Santander, Barclays, Natiowide, etc etc.

I’d do it. 820 sqft is tiny. Maybe ok with one child but extra space is wonderful when they get bigger. Will the 2000 sqft place have a nice big garden? If you can afford the fixed rate now then I’d definitely put in an offer. £500 spare a month is great!

The amount of "extra" mortgage you're planning on taking out is a perfectly normal amount to owe on a property at your ages, depending on house prices where you live. This wouldn't bother me at all.

The only thing that would put me off is the 35 year mortgage. Are you realistically going to be paying it until then? Or is it for lower payments now and you plan to shorten the term later (overpaying with your wages in future, any inheritance etc)? If it's the latter, I really wouldn't be concerned at all.

We are mid 30s; have 300k equity over 50%. We have only really had minimum wage jobs until the last couple of years.

House prices have gone up a lot. We were lucky to buy and sell at good times.

Yes it is the norm now. Among my peers anyway. 30s.

Perhaps they have suffered parental loss early in life and inherited money?

Lots of people work at least part time around pre school kids. Presumably to get to where you have you must have earned more than your DH?

I advise against. You can reorganise your house. Kids will move out one day.
You are in a great position to enjoy your life free from financial worries so focus on that.

This thread makes no sense. Op is looking at 800k houses and one mid level teachers salary and is apparently mortgage free on that as well... how does a teacher in their thirties have a 500k house fully paid off

Surely not 82 sq ft! 820?

Right now the economy is not in a place where i would cheerfully overextend myself.

You can't afford it. Most people can't afford a bigger house with a sahm.
if you want to be better off, why don't you go back to work?

So what size house are you in now , what size are you looking at and how many kids?

The cost of any tradesman has gone through the roof so no imminent bathroom, kitchen, electrics,plumbing,outside work etc.

If you do buy (and I think if it's correctly priced then it may be a good investment), go for the one that needs no obvious work. Get a solid survey to make sure that's the case. The cost of building work has gone through the roof.

I'd be too nervous about only £500 spare pcm. Broken dishwasher, roof repairs, mortgage rates, anything can happen.

Have you found a house you want @LoftyOtter? If you haven't, tighten your belts now while you look bearing in mind a bigger house will likely mean significantly bigger bills than you are currently paying (especially council tax)

Are your children at school yet? Can you be more flexible with the area by increasing the commute to work for your husband?

Not every child goes to uni and if the trend continues your children may be living with you until well into adulthood so imo it's a smart decision to buy a bigger house to accommodate growing children.

You are basing the mortgage on husband's income and presumably you won't struggle to return to a well paid job when childcare won't be an issue. Making the belt tightening fairly short term. You're in a good position to do this, and you may find your perfect home a bit cheaper! Good luck.

The mortgage term wouldn’t concern me too much if I had a longer term plan to reduce it, but the £500 per month would. For clothes, holidays, days out, social activity. What about clubs and activities for your DC? I wouldn’t choose to live on that little discretionary spend unless I had no option.

is there really no middle ground, no mortgage to £275K is a bit of a jump?

@Ryeman depends on the lender, some go up to 75.

I don’t think you’re likely to get a 35 year mortgage at your age, OP. We got the max of 29 years which took us to retirement age.

I assume as you’re mortgage free, you’re currently ploughing quite a lot into savings? Increase those for a year so you’re left with the £500/month to spend and see if it’s doable.