To ask if you had £1k/m to spend on a mortgage would you..

[ElonXMusk]

1. get dream house on 28-30year mortgage, need no work and is future proof.

Or

2. be mortgage free earlier and do a more modest house that you’ll need to move on from at some point for 20 years?

Dream house now. If circumstances change, I’d downside to be mortgage free.

Something in between

Why would you need to move on from house 2 after 20 years?? 🤷🏻‍♀️

Depends how old I was! I'm 28 and took the first option.

@overnightangel

Why would you need to move on from house 2 after 20 years?? 🤷🏻‍♀️

Wouldn’t necessarily be 20 years but it would be in the next 5 odd years. 20 was the mortgage length..

That’s true about age, I’m 29, had all the babies I’m going to have.

Dream house

For me it depends on how comfortable £1k per month is and if dream house is dream location forever.

Can you take extended maternity/work the hours you want on that?
Is it close to schools? Will that always be a good thing?
Is the house or cash more valuable to you I.e. do you want to save and spend on big holidays, cars, private school?
Does the location work for aging parents?
Do you want to move or explore the world when kids are moved out?

I'm confused.. our mortgage is 1300 per month and it's by no means a dream house or dream location.. it needs work and it's a 30 year mortgage. But within 5 years it will have gone up in value enough and we'll have paid off enough to be able to move on to the next home hopefully with more equity and cheaper monthly payments. Not sure where your finding these amazing cheap properties or rates unless you have a very high LTV

Ours is best part of £1k and certainly not our dream house, it's solid, has character and enough space but it was a complete project that seems a bit never ending, is on a 25 year term, so if you can get your dream house for that amount and can afford it, do it

Dream house is in dream location, for now, I suppose anything could happen but it really is lovely.

The 1k isn’t a stretch at all, 18% of our take home but we’re pretty particular in not borrowing ourselves up to the eyeballs. I like to live.

There isn’t a private school where I am, unfortunately otherwise we would 😕

If your family is complete, why would you need to move in X years?

A

We’re in wars @Sxxyfing houses are cheap!

Our mortgage is more than that and we have nowhere near our dream house!
In your situation I’d go for the dream house.

Ha! Wales not wars

@BernadetteRostankowskiWolowitz

If your family is complete, why would you need to move in X years?

Two tiny babies don’t require the same as two smelly teenagers, I’m assuming.

I’ve just moved into my dream house with a similar mortgage over a similar time period. We were close to being mortgage free in the old house but it needed so much work and I hated the area. Best decision I’ve ever made

Were in our early thirties and just bought, my first house but DPs second.
We bought a nice house in a good area close to good schools which has alot of potential. We can extend do up garden convert attic, knock dining room and kitchen into 1 but for now it's nice as it is.

Is something like that an option. Not break the bank but have a nice house with potential.

Dream house with enough left to pay all the bills

@User112

Dream house now. If circumstances change, I’d downside to be mortgage free.

Same here.

We looked at similar priced properties, not quite as much, earlier this year and decided against it.

Its not just the mortgage. It's council tax, upkeep costs. House at that price come with huge gardens we would need to pay someone to keep. Would need a cleaner etc.

And if I lost my job or became ill, while I have insurance, keeping up with building would be a concern.

But also my kids at 18 and 11 and not having anymore. I am also nearly 40.

Then my mum died so, we put plans in hold. I am not in a position to make a decision at the moment.

But I think we are going to go for something more modest, less upkeep.

One we looked at was gorgeous, but needed a new roof in the next few years and the quotes were 50-60k.

For now, I am happy with the terrace I bought as a single parent.

I don't understand why you'd do anything other than option 1.

I did the second. Bought a small bungalow in an area I like and paid off the mortgage in around 10 years. I did choose it with a view to extending if I needed or wanted to. The attic is large/high enough for a 3 room loft conversion, and all the other houses in the street have single story extensions to the rear and/or garage conversions already so planning permissions shouldn't be an issue.

@JackieCollinshasnoauthority

I don't understand why you'd do anything other than option 1.

It’s the 30 years that is a little intimidating, along with the massive amount of debt.

Atm our house is too small, cheap and we’ve got a low ltv. It feels like we’re skipping a step.