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Original poster

Mortgage free or amazing house?

95 replies

Mayhemmumma · 19/08/2021 20:32

What to choose - very fortunate position I realise.

Sell our house, pay off mortgage buy nice house in cash further out of ideal location, that bit too far to easily see friends or kids attend their current clubs but could go to a lovely school etc.

Double our mortgage (to 350k) buy an incredible house in great location? Lifestyle etc set up long term.

OP posts:

NorthernChinchilla · 19/08/2021 21:28

Interested in views on this as similar (ish) to OP... move to great house and be mortgage free, or amazing house still with mortgage.
Crap how it came about tho

whatthejiggeries · 19/08/2021 21:33

I absolutely would do the latter. I double my mortgage 10 years ago and haven't ever regretted it

lunar1 · 19/08/2021 21:34

We had pretty much the exact same situation, we went for the house and I haven't regretted it for a single second.

I think I reassured myself that if finances significantly changed we have more than enough equity to buy a suitable family home and be mortgage free.

The house we moved to is perfect for us. We were 3 years off being mortgage free abs could have paid that with plenty leftover from savings. It's still worth it.

WetBench · 19/08/2021 21:37

Mortgage and incredible house. MN seems to be obsessed with being mortgage free, but you’ll get more enjoyment out the incredible house than spending the money on taxis etc

Original poster

Mayhemmumma · 19/08/2021 21:53

Sorry to answer questions...

House two is not 350k it's 960k, house one is £580k

We're late 30s with primary aged children

Both jobs work in either house, slightly easier in expensive house.

Definitely want to move for lots of reasons but in part because of how much we have made on our current home.

Perfect house might be a quieter more boring location for children when they are teens..cheaper option long term might be more fun for them? Less so for me I want tranquil! We are committed to taxi-ing kids wherever we go.

Expensive house is affordable and life style won't change but our income isn't massive it's average just fortunate in terms of money in current house. We would have nothing to do the extras we would like - under floor heating/decorating but the space works and we could do it up slowly.

To add we have offered on expensive option which I think I want where as DH loved it but now thinks we're mad not to go mortgage free.

OP posts:

2bazookas · 19/08/2021 21:57

Mortgage=free is a great liberation, and security. I recommend it.

Original poster

Mayhemmumma · 19/08/2021 22:03

It's really helping hearing yes to mortgage free because that was a major life plan and we've screwed it up by falling in love with a beautiful house. I am on a average wage 30k but my husband earns more - but it's a physical job and in the next ten or so years will get much harder.

Friends are telling me 350 mortgage isn't much but to us it is a big leap.

It's so difficult to say no to our 'ideal' as we could stretch....

Of course we could go cheap, flip it and move on but we've done that a lot and we need to settle.

OP posts:

Jerseygirl12 · 19/08/2021 22:03

What’s the rush to be mortgage free in your 30’s?

nancybotwinbloom · 19/08/2021 22:07

How much would being mortgage free make. A difference to your life now?

If it's three amazing holidays a year snd never having a money worry again we'll maybe go for that?

Can you make you current house for the bill with an extension or whatever?

What are your wants and what are your needs?

Original poster

Mayhemmumma · 19/08/2021 22:08

Mostly because of DHs job which is physically demanding. If he broke his legs we are screwed (insured but still) I want him to stop working so hard and enjoy the opportunity we have to reduce our out goings - but I'm also materialistic and wanting beauty, land, peace etc we are real home bodies, socialise and work a lot but home is everything (no holidays really) we could make home a real idyllic base in the mega house.

OP posts:

nancybotwinbloom · 19/08/2021 22:09

We are in a slightly different situation and have to make the same decisions in three years time and I'm torn too.

We could have fab holidays and a holiday home or get a bigger house.

I've skinted myself making over payments. I was adamant on a bigger house but after reading this thread I do think I'm wrong

ACloseMatch · 19/08/2021 22:10

I'm mid fifties and would still go for the prefect house.

nancybotwinbloom · 19/08/2021 22:11

It's so hard!!

Jerseygirl12 · 19/08/2021 22:11

Could you go for the bigger house and get the extra borrowing as interest only and then sell up and downsize when your DC are young adults? That’s what we did, the extra 140k we borrowed only cost £150 per month and the house increased a lot more than our other house.

Nancydrawn · 19/08/2021 22:13

Totally agree that it depends on cushion.

So, e.g., if it's about having £3500/month left after essential bills vs £3000 month left, that's a very different story than £1000/month vs £500 month.

mafted · 19/08/2021 22:13

It sounds like the better house is what you really want.

namechangeat11pm · 19/08/2021 22:15

If you are social then I think I would go with the mortgaged option, assuming it is much easier to continue your social life.

DH and I paid our mortgage off on our first house in our 20s, we were lucky to have bought at a good time and made a good profit on it like you. We were mortgage free for a couple of years and it was so much fun, we had some amazing holidays!

But we decided to move house and get a mortgage again. I do miss the freedom of not having a mortgage, but I don’t regret moving either. We would be working anyway, and I also see a house as an investment whereas holidays as lovely as they are, once the money is spent it’s gone. We also moved back closer to our families, and we moved in at the end of 2019 and I am so grateful I was in such a lovely house during 2020.

So yes, lots for you to consider but that’s my perspective from a somewhat similar situation.

leavingtime · 19/08/2021 22:18

Go mortgage free and settle down. Then no worries about DH's job/health changes...and money in your pocket each month not accounted for before you've been paid every month.

I was 39 when I bought without a mortgage. Best thing I ever did. So liberating.

ThatIsQuiteACrane · 19/08/2021 22:19

Ah ok, those figures make more sense!

Is your DH just having a wobble because you've offered on a big purchase?

Although I'm Team Dream House, to be honest with fairly modest incomes I'd be more inclined towards the mortgage free or a more modest mortgage. There are costs involved in the expensive house/grounds, running it, maintaing and renovating it, decorating and furnishing it etc. Plus a fair chunk on stamp duty at that level. I can see a lot of your income disappearing that way.

We are facing a lot of similar issues ourselves - DH wants the country pile and the peace and privacy appeals to me but I wonder about the actual lifestyle and that of our children when they're teens. The cheaper, more bog-standard-but-perfectly-nice homes would be closer to friends, family, shops etc.

GoWalkabout · 19/08/2021 22:20

I don't understand why you wouldn't look for something between your house and the expensive one (which doesn't sound right for your family really). Don't go cheaper just to be mortgage free (honestly we don't feel better off since that, we just have savings to buy a few more things it still doesn't go far!)

Original poster

Mayhemmumma · 19/08/2021 22:23

Oh gosh every post I read I agree with!

I thought I could could choose by school place but I have to exchange on house to get a school place.

Both houses are similar space wise and style (lovely!) but both need bit doing - which is much easier in cheaper option. House have similar size gardens but expensive one has no neighbours and is in a very beautiful spot and seems bigger, cheaper option is in nice looking village.

OP posts:

DaisyWaldron · 19/08/2021 22:24

Can you not get a less expensive house in the good area?

We went for a small, cheap house in the less salubrious part of a great area, and I'm very happy with our decision. No mortgage, outstanding state schools, most places we want to get to are within walking distance.

Original poster

Mayhemmumma · 19/08/2021 22:29

I'd love a cheaper house to crop up in our preferred location but so far it hasn't happened - we have looked at some but they are near big roads which is a deal breaker for us.

Time wise we want to keep our very generous buyers and so have to make a choice soon!

OP posts:

MissM2912 · 19/08/2021 22:31

I am also late 30s and I really wouldn’t fancy a 350k mortgage hanging over me. You will have an asset at the end but it’s a lot. I would go either mortgage free or go up to about 100k.

MissM2912 · 19/08/2021 22:35

Or go mortgage free on main house and buy a holiday home with mortgage.

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