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Original poster

Wwyd - mortgage free or bigger house?

67 replies

cheeseismydownfall · 09/11/2018 17:52

We will be moving shortly having already sold our last house. We've realised we have enough cash to buy a perfectly decent albeit thoroughly unexciting and unimpressive house that's big enough for us all in a perfectly okay area without needing a mortgage. This seems hugely appealing! On the other hand, DH is a relatively high earner and we could take out a mortgage big enough to buy something close to a "dream home" (although I hate that phrase). Schools would be the same in either scenario.

What appeals to me about being mortgage free (apart from the obvious) is the idea of it focusing us on actually living the lives We want, rather than getting sucked in to the whole country house Aga lifestyle nonsense. But I'm weak and I feel it calling to me, like I should want those things (we live in a pretty well off area I guess, lots of private schooling and aspirational lifestyles). Also, if interest rates stay low and house prices rise then we would be better off long term to stretch ourselves now with another mortgage.

What would you do?

BTW I am very, very appreciative of the fact we are in the position to have this choice at all.

OP posts:
Original poster
cheeseismydownfall · 09/11/2018 17:53

We are early 40s Btw if that helps.

OP posts:
NotSuchASmugMarriedNow1 · 09/11/2018 17:55

I'd go for the dream home. Property is still a good investment

TiddleTaddleTat · 09/11/2018 17:55

I posted a similar question recently. We're leaning towards the mortgage free option, but may end up going for a house that requires a small mortgage over a 10 year term that we could comfortably pay off in 5 years if we wanted.
I think the security of mortgage free is priceless for wellbeing.

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General money
Racecardriver · 09/11/2018 17:55

I would want mortgage free. You aren’t that young anymore. Do you really yo soend the next twenty years payingoff a house that your kids are going to move out if?

ileclerc · 09/11/2018 18:10

Mortgage free as long as the house is nice, not a squeeze, good resale potential and decent area

LaurieFairyCake · 09/11/2018 18:14

Mortgage free

Then you have thousands every month to put towards retiring early

You could both be sat watching Netflix by 55 instead

Bunnyhop1502 · 09/11/2018 18:22

Is the mortgage-free property likely to increase in value? You could buy that property then sell in ten years time to buy dream retirement home!

EvaHarknessRose · 09/11/2018 18:25

Is there not a small mortgage option?

Original poster
cheeseismydownfall · 09/11/2018 18:41

We could go for a small mortgage, yes, but I'm not sure it would be worth it in terms of what extra it would get us, vs the sense of freedom of not having a mortgage at all. To get the nearly-dream-house (which would still involve some compromises) we would need a mortgage of around 250k. It would be comfortable enough to pay it now, assuming our circumstances don't change - but that is a huge IF isn't it? And will we want to be working for another 25 years or be in a position where we have no choice but to sell our home if we don't?

OP posts:
TiddleTaddleTat · 09/11/2018 18:57

For me, the choice between a £250k mortgage and mortgage free is a no brainer. Imagine the freedom!

NationalShiteDay · 09/11/2018 19:01

😮 £250k??!!! There must be a middle ground between no mirtgage and a £250k mortgage take out at age 40!!!!

I say this as a high earner

Stringervest · 09/11/2018 19:01

Home is very important to me. I’m hugely risk averse in most senses but we stretched ourselves to buy this house. We have a large, 35 year mortgage and although it’s very out of character for me to have this attitude, I have no regrets about buying the house. I spend a lot of my time at home and love how much I love it. To me, it’s worth the big mortgage. So I would buy the dream home.

Cecilia2016 · 09/11/2018 19:03

I would love mortgage free if the house is in the good area and and also comfortable enough. We faced this 4 years ago when we wanted to buy our dream home. We found the house to buy and was supposed to be mortgage free but after few searches and it turned out not to be good instead we went for a big house to accommodate our needs and we put down the large deposit and now we have a small mortgage to pay.

GreatDuckCookery6211 · 09/11/2018 19:04

I would buy the dream home but that's not necessarily the wisest thing to do I'm just being honest.

HollyBollyBooBoo · 09/11/2018 19:05

Mortgage free but I am totally risk adverse and have money issues from a shitty relationship so probably not very impartial.

Original poster
cheeseismydownfall · 09/11/2018 19:07

I know it sounds crazy to say there is no middle ground, and of course there is in theory. But anything less than a 250k mortgage would still fall way short of my fantasy house, so I'd actually rather prefer to compromise more on the house and enjoy the feeling of freedom, than go for the middle ground and feel a bit dissatisfied with the house as well as having a mortgage, if that makes sense. As I said, the mortgage free house is perfectly good enough and meet out minimum requirements (bedroom for each of the children, ok area, walking distance to good schools and lovely market town).

OP posts:
eurochick · 09/11/2018 19:07

We are the same age and having the same dilemma. We decided to upgrade, accepted an offer on our place and now can't find anywhere to move to.

JanetLovesJason · 09/11/2018 19:09

Mortgage free, then save up money to
A) buy dream home outright later on
B) retire early
C) pay kid’s university fees
D) give kid’s house deposits
Or whatever other financial goal you have.

UtterlyUnimaginativeUsername · 09/11/2018 19:09

I'd go with the smaller house, and use the extra to travel, personally.

MountainPeakGeek · 09/11/2018 19:12

Mortgage free without any hesitation. It's a no brainer to me, but obviously not everyone is the same. The one thing that would sway me to take a mortgage would be if I couldn't get a detached property without doing that. Nightmare neighbours in our last semi meant that that's not negotiable for me.

anatol · 09/11/2018 19:13

Absolutely mortgage free. When you're on your deathbed it's the difference between being able to look back at all the things you've done and the experiences you've had versus looking back on that lovely house you had. I know which one I'd rather be thinking of.

Mixedbags · 09/11/2018 19:13

As long as the house is decent and the schools are goods. Absolutely mortgage free. In my opinion, you live once and if you have children it would be lovely to be able to not have to keep thinking about money and costs every school holiday for example! And just ‘live, do and see things’.

Toomuchgoingon · 09/11/2018 19:16

We moved. We had issues with space and parking so upgraded. Glad we did and know it's the right move, but there are days when I wished we were mortgage free.....i would have been less happy in the previous house though so I am sure in our case that we did the right thing

Bluewidow · 09/11/2018 19:18

Mortgage free without a doubt . You don't need the dream
House you just want it. Why not make a list of all the things that you could do with the extra
Money. I means that's over £1k per month to play with 😉😉

museumum · 09/11/2018 19:21

How old are your kids? If you’re still tied to school terms / exams for the foreseeable future I’d be tempted to get the mortgage.
But if they’re close to 18 I think I’d go mortgage free and travel/holiday.