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Original poster

Is it too soon to downsize?

33 replies

downsizedilemma · 04/03/2024 21:18

Thinking about downsizing, and would appreciate a critical friend perspective from the sharp minds of Mumsnet.

I am late 40s, single, with a teen still at home. I have about £60k still to pay on my mortgage. My house is fine but I don't love it. Thinking of downsizing to a flat in the same area to pay off my mortgage and have some money in the bank for a house deposit for DC in future. I am planning a career change which will mean I will be earning less so it would be great to have smaller outgoings.

I would be giving up outside space but that doesn't bother me too much as I don't enjoy gardening and there is lots of nice public green space around here.

Is there anything I should be considering financially before taking the plunge?

OP posts:
Holypricks · 04/03/2024 21:23

Downsize when you want the cash for your DC, it will devalue in the bank. If prices rocket you’ve decoupled the money from the market and the money won’t go as far. Vice versa is true, but it’s less risky to stay linked.

Notinmylifethyme · 04/03/2024 21:24

I think I'd look into how much the current house would increase on value, which is likely to be faster than money in the bank.

Unless you have a way of spinning your cash into gold, I think I'd downsize when the deposit was needed.

Original poster
downsizedilemma · 04/03/2024 21:28

Thanks @Holypricks and @Notinmylifethyme you make good points. I think I am just so tempted by the idea of not having to pay the mortgage every month!

OP posts:
Holypricks · 04/03/2024 22:03

It’s tempting, but I think it’s too soon. Think of your mortgage as saving for your DC future, makes it more palatable.

IvorTheEngineDriver · 04/03/2024 22:05

If you get a flat remember to factor in service charges and ground rent and, most importantly, the rate at which they will rise in future.

Scarletttulips · 04/03/2024 22:09

I would want some outside space even a balcony so you sit in the sun!

I would also see house prices rising and your banked money going down.

Can you extend the term? Reduce the payments? £60K isn’t that much of a morgage.

Jeannie88 · 04/03/2024 22:20

Oh my, this post is making me feel even more concerned about upsizing! Early 50s with primary dc. I'm so happy where we are. DH desperate for bigger house, garage, convincing me it's the best for us all to have more space for next 10 years. We will be mortgage free in a year so taking out another smaller one seems a bit mad but can also understand it's now or never at our age. We will both be working and hopefully viable for the extra mortgage for 10 years. Yes we can do it but I was hoping to kick back a bit and enjoy having more free money, cutting down on hours etc.

I'm the one compromising, I love where we live, yes it's not a really big house but I'm happy 😊 So getting another mortgage, paying higher bills, council tax etc isn't what I was expecting during a period to wind down a bit. (Lot of other issues including taking care of family members and my own).

Sorry, I've rambled on here, so just to say you're still young and have the choice to do whatever is best for you. I've always been advised property is the best asset you can have so can hold on to it for more equity or move and pay less, go with your gut and good luck! Xx

Original poster
downsizedilemma · 04/03/2024 22:20

It is hard to imagine house prices going up even more (they are high where I live) but I have thought that so many times and they have always risen. I never learn!

My repayments are already not that big but it's a good idea to reduce them even further for the sake of staying in a more valuable property, @Scarletttulips

Good point about service charges too, @IvorTheEngineDriver

OP posts:
Original poster
downsizedilemma · 04/03/2024 22:23

@Jeannie88 it's hard isn't it! I am like you, I want to work less and am not bothered about having space. That is the one advantage of being single, you don't have to worry about what somebody else wants - but on the other hand you don't have anybody to give you a sense check! Hence my post. Good luck to you too.

OP posts:
determinedtomakethiswork · 04/03/2024 22:33

IvorTheEngineDriver · 04/03/2024 22:05

If you get a flat remember to factor in service charges and ground rent and, most importantly, the rate at which they will rise in future.

Yes, this. It's what stopping me from downsizing. I don't have a mortgage anymore and I don't want to start paying hundreds per month for maintenance.

Scarletttulips · 04/03/2024 22:36

I think as your DC is still a teen (we have teens) and give property prices they aren’t likely to be moving out any time soon! I think I would revisit this if and when there’s signs of him moving out - or if he’s working it’s time to reap some cash back! Even if you save it for a rainy day.

weirdoboelady · 04/03/2024 22:38

Ground rent/service charge? Can you find somewhere with shared freehold, to reduce the risk of leaseholder ripping you off?

SpringSprungALeak · 04/03/2024 22:38

@downsizedilemma I'm 55 & trying to upsize! 😂

this place was supposed to be a 'flip' but life happened & I'm stuck here. For me the flat is a bit small, but the things that drive me INSANE is not having a driveway/private parking & no outsize space! Theres a park a 2 minute walk away, but I can't go & sit there in my PJ's with a cup of coffee and there's nowhere comfortable to sit & read etc.

I also agree that financially it's not the greatest idea to downsize at your age.

Scarletttulips · 04/03/2024 22:39

but I can't go & sit there in my PJ's with a cup of coffee

See I always nip outside when cooking and waiting for stuff to boil! You definatly can’t do that down the park!

SpringSprungALeak · 04/03/2024 22:40

weirdoboelady · 04/03/2024 22:38

Ground rent/service charge? Can you find somewhere with shared freehold, to reduce the risk of leaseholder ripping you off?

@weirdoboelady

that comes with other issues though. Disagreements about Insurance, if the roof needs replacing, if you ever get everyone to agree, you then have to agree on design/colour/wuality. IMO it's a constant pain in the arse.

Original poster
downsizedilemma · 04/03/2024 22:41

I have a funny thing where I never go out in my garden even though I am quite outdoorsy and like going for walks. So I'm pretty confident I wouldn't miss the outside space.

But you are also making great points about the financial implications. I'm not sure why I'm so drawn to downsizing, perhaps it just feels like it would be freeing to have it done and not have the mortgage hanging over me anymore. But I do hear what everyone is saying.

OP posts:
Lighteningstrikes · 04/03/2024 23:34

How many bedrooms do you have?

I would never get a flat for the reasons mentioned above, but also because of the possible noise implications.

Also if you have a bad neighbour and there’s usually one, you might be in quite close proximity.

Obviously depending on the size of your house, could you downsize to a 2 bedroom cottage to get rid of your mortgage?

Original poster
downsizedilemma · 05/03/2024 08:26

I'm already in a two-bed cottage sadly.

OP posts:
SecondUsername4me · 05/03/2024 08:30

Honestly your money will be less secure (for your sons future) if you move to a flat - it'll rise in value much much slower than your current home, and you are at the mercy of service charges which can (and probably will) get out of control.

Iwasafool · 05/03/2024 08:36

downsizedilemma · 04/03/2024 22:41

I have a funny thing where I never go out in my garden even though I am quite outdoorsy and like going for walks. So I'm pretty confident I wouldn't miss the outside space.

But you are also making great points about the financial implications. I'm not sure why I'm so drawn to downsizing, perhaps it just feels like it would be freeing to have it done and not have the mortgage hanging over me anymore. But I do hear what everyone is saying.

I'm so glad you said that. I've lived here nearly 30 years and never sat out in the garden. We have a beach down the road which is nice but generally I don't like cold wet weather but if it is sunny I burn in minutes so rarely weather I enjoy sitting out in. I was beginning to think I was the only person who doesn't use their garden.

financialcareerstuff · 05/03/2024 08:57

downsizedilemma · 04/03/2024 22:41

I have a funny thing where I never go out in my garden even though I am quite outdoorsy and like going for walks. So I'm pretty confident I wouldn't miss the outside space.

But you are also making great points about the financial implications. I'm not sure why I'm so drawn to downsizing, perhaps it just feels like it would be freeing to have it done and not have the mortgage hanging over me anymore. But I do hear what everyone is saying.

I really feel you, OP. I have the opportunity to pay off my mortgage in October and downsize. All financial advice seems to be to not pay off mortgage- that it's more financially gainful to put the cash elsewhere etc, but I have a hugely strong emotional pull to being mortgage free, and smaller, with bigger, accessible savings. It makes me feel safer in the world, and less burdened, lighter.....

Original poster
downsizedilemma · 05/03/2024 09:12

Ha, @Iwasafool, we have found our people! I do think the British weather plays a bit role - I hate being cold, so am much happier moving around outside than sitting down when I immediately get chilly (or start to frazzle on the rare occasions the sun is out!).

@financialcareerstuff That's exactly it. I've never managed to save much as I've always been single and I love the idea that I could start to squirrel away some cash.

OP posts:
Chitterchatterchoo · 05/03/2024 09:12

I think the key is maybe appreciating the potential financial implications mentioned here and just factoring into your decision.

If you want more time and financial freedom then go for it - have the time whilst you are young/fit enough to enjoy it without financial pressure. It is ok for this to be more important to you than financial gain.

GOODCAT · 05/03/2024 09:28

The other point to factor in is that moving house is extremely expensive. If you move now, how many more times will you need to move? For example if you are going to a ground floor flat, all good for when you retire, assuming the area works for that. If you have to go upstairs all the time, you may need to move again so that becomes two house moves, rather than one.

I was also surprised, now I am in my early 50s, as to how much my thoughts have turned to affording retirement, so far from reducing working hours, I am wanting earn as much as I can to try to afford the option of slightly earlier retirement.

I am not yet mortgage free, but I wouldn't move to go mortgage free because I intend to move area when I retire and either have a bungalow or ground floor flat to make it an option to stay. That said I am saving hard with a view to not remortgaging when my fixed term comes to an end so I can clear it or very nearly clear it. That is not the most sensible option. I should put more in my pension. However, I do want to be mortgage free.

ssd · 05/03/2024 09:42

I'd move and be mortgage free op