AIBU to want to move

[GarageFlower123]

We currently live in a 3 bed semi detached house, with no mortgage (my mum died and we were able to pay the mortgage off). We have 2 kids and the 3rd bedroom is tiny and is starting to feel really small for my 9 year old. The house in general is pretty shabby and was bought when I was pregnant with my 2nd child as an emergency stop gap - it was cheap, and meant that we could manage on one income for 8 years while I stayed at home with the kids.

We've had quotes for putting extending, and would be looking at around £100K as there are complications with access etc. As it is an ex-council house, even with 4 bedrooms, there is a ceiling price on the property and we would never get that money back. Also, the neighbours, although lovely, are council tenants and don't maintain their house and garden at all well.

My OH is really low maintenence, and would happily live in a shed. So he's not fussed. Buying a 4 bed house would mean us borrowing around £150k which would make us around £700 a month worse off.

Is it worth it? Am I being precious and entitled wanting a bigger house? Should we just sit tight in our small horrible house and enjoy being mortgage free? We're both 47, and the kids are 9 and 12 - if we don't do it soon, there will be no point.

@Pinkdelight3

I wouldn't bother extending in the scenario you describe. Mortgage isn't the same as other debt and you can comfortably manage it in secure jobs. Investigate what it would cost over a shorter term so you can see your way to being mortgage-free again before you're 60. You'll get much more out of life in a better house than wasting thousands on Hermes clutter over the years, and you'll still be able to build up the pension. Your current home will be perfect for a younger/smaller/less wealthy family.

I never thought of it like that - seeing our current house as a really good space for another young family. I think my OH will also see that as a positive (he's lovely, but annoyingly "good").

I think it definitely is coming down to a choice between tat that I buy off the internet because I have disposable income, or a solid investment for the future.

Have you considered renting this house out and buying another home for you and your family? You could borrow against it for a deposit for another home and use the rental income to pay that off and potentially part of your second year property. Might be worth a conversation with a mortgage advisor who deals with that kind of thing?

Best thing you can do right now is start living without the extra 700-900 it will cost you per month - mortgage & council tax etc.

Start a budget and stick to it. Will help pay for all the moving fees plus give you a reality check about how that would be on a day to day basis.

How much do you currently save each month?

Tidy up the current house to maximise its value - an estate agent could advise on what expenditure will be repaid in increased property value and what won't.

Then in your position, I'd move to a larger house with mortgage. The £700 would pay off the mortgage over time, and you'll end up with a larger equity and in the meantime get to live in a nicer house.

You should also consider pensions. You say both you and DH have secure jobs. If these are state sector and come with final salary pensions, this is already taken care of. Otherwise, you need to make provision, so investigate what company pensions you have and if these are inadequate set-up private pensions.

I understand perfectly expenditure increasing to match income, but your discretionary spending is much better going into a mortgage that will build property equity and/or a pension than on Hermes stuff. This doesn't mean not buying anything from Hermes, but only with what's left after paying the mortgage / funding the pension.