Wwyd - mortgage free or bigger house?

[cheeseismydownfall]

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.

Mortgage free.

Then buy a separate house, rent it out.

Win win win as far as i can see.

Being mortgage free now in yours 40s is short term thinking. You can make your money work for you for another ten years unless you want to invest the additional money in shares or something else.

Mortgage free without a doubt.

We are mortgage free and for us it's fabulous. We go on lots of amazing holidays and have wonderful experiences together as a family.

We recently debated having a new kitchen but decided to spend the money on more holidays instead. It makes us all happy. The older kids still come away with us, we all love being together.

I'd go mortgage-free - one less thing to worry about if anyone loses their job, able to have a better lifestyle in a home that meets your needs, able to pay more into your pension/kids' uni funds etc.

If you and yours can be comfortable and secure without a mortgage take that option.

Mortgage free or a very small mortgage as in life no matter how much you earn, shit can happen and when it does not having to worry about keeping a roof over your heads is very helpful.

Dream home now then you have the ability to downsize in the future

I've been mortgage free since I was 39 and it's great. My outgoings are low, and no money worries. I've moved several times since, had a good deal each time and been able to move quickly by being a cash buyer.

Children leave home quicker than we think sometimes, then there could be too much unused space. With your free money you could have lovely holidays and experiences, decent cars, put money aside for retirement and/or for your children's future. Or even buy a holiday home/chalet/caravan for all the school holidays.

You could also use the spare money to make the house you go to everything you want...loft room/games room/extension/summer house/large garage/fantastic kitchen/amazing bathroom/landscaped gardens/Aga!

Well, I wouldn't commit to a hefty 25 yr old mortgage in my early 40's unless I had secure highly paid jobs. The only people in my circle who have committed to £300k+ mortgages in their early 40's just happen to be GP partners/NHS consultants. Neither of that lot have chosen to commit to school fees at the same time either.

Horses for courses. Being mortgage free allows us to have a nice lifestyle which is stress free on a financial level at least. We're late 40's and having always worked in the private sector, we've experienced redundancies in the past and expect to do so again, in the near future. You don't see that many 50/60 yr olds around to be frank. We have an older friend/ex boss who has always been a higher flyer - director/board level jobs who retired at 55 basically because he found it harder & harder to find employment once he hit 50. Good thing he could afford it and his DC had left home. When the CEOs become younger than you, you know that redundancy will come sooner rather than later...

The housing market/economy is going into a downturn - unless, you have good job security, I wouldn't. Maybe, if you're a dual income household and you could survive on the lower salary, in case of job loss. Only you can judge your own level of risk and be comfortable with that.

I’d buy the dream home. Obviously it’s not the ‘sendible’ Decision but it’s what I’d do.

It's the same decision we will be making. I'm 31 and set to be mortgage free before 40. But I had children young and they will be adults by then. We are swaying towards mortgage free and living the most amazing lifestyle. Yes it's not the best investment, but life is finite and we want to enjoy it.

I was going to say go for the house, for me a lovely home is much more important than travel or 'experiences' then I saw it was £250k

We were mortgage free at 30. It was bloody amazing. Then we had kids and got a £250k mortgage. Should be paid off by the time we are 50. Can’t wait to have a chunk of cash every month for other uses.

Mortgage free- focus then on holidays and experiences for the kids- which they'll remember more than the 'naicer' house. Schools will be the same. Opportunities will be better- and your retirement nicer!

I'd rather be mortgage free but then I don't really have a vision of a "dream house." As long as it's big enough and functional I'm happy. Having a money pit for a house would be my worst nightmare, I'd rather have extra money to enjoy life with.

We were mortgage free and went for the bigger house in nicer location. 100% worth it. We will still be mortgage free and able to retire by mid 50's anyway by saving and overpayments. Neither have we missed out on anything or had to be frugal. First year or you may have to budget but it's suprising how quickly things get easier.