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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To aim for mortgage free and stay in small home

51 replies

Anna19875 · 06/01/2022 20:02

Currently we are overpaying our mortgage and will be mortgage free in 7 years. I feel like this would be massively freeing, however I also would like a bigger house than our current 2 bedroom place.

AIBU to stay somewhere which is realistically a bit small for us to be mortgage free sooner?

OP posts:

flippertyop · 06/01/2022 22:02

I have always gone for the bigger house. It enhances my life and I now have lots of equity. I would absolutely go for a bigger property. You live in it - what else could you possibly buy with the money that would make that much difference to your daily life ?

Pinchofnom · 06/01/2022 22:06

I upsized and took on a substantially bigger mortgage but I love my house. I moved during the pandemic and having more space, nicer surroundings and being in a better area really did improve my quality of life.

I do make overpayments on my mortgage because the thought of being mortgage free would be amazing but I also invest in stocks and shares as the growth will be higher than any interest I’ll save paying off my mortgage earlier.

SunSparkle · 06/01/2022 22:10

@Newyearoldyou what ISA’s do you have that are performing so well? I’m so dumb when it comes to investing and I don’t know where to start.

Yazoop · 06/01/2022 22:21

It depends on what the rush is for - do you want to be able to work less or do something different with your life? If so, it might be absolutely worth it (although may want to invest also and have a retirement/old age strategy). I totally understand that - if it was a binary choice, I’d rather have the smaller, paid house with less stress and more freedom while still relatively young (I know it isn’t all that simple in reality).

But there isn’t really enough about your motivations to go on - and I think these decisions are best considered in terms of the type of life you (and your other half) want to have, and working back from there.

Newyearoldyou · 06/01/2022 22:49

@sunsparkle

I'm totally ignorant about maths etc but I inherited a small isa and was terrified about a) doing something wrong with it and b) I knew the funds it was invested in were "dogs" ie May have done well in the past but now not doing well at all. But I was scared to moved them.

So I started to listen to money podcasts, this is money is good, read more, and then started to Google funds and check them agaisnt morning star rating and description.

Once I knew a little and started to understand what on earth proper long term investment is I came back around to low cost index trackers.
They are not going to make anyone a fast buck.
They are not getting huge returns like some funds with glossy managers.
However... As Jack boggle said. Why buy the needle when you can buy the haystack.

So, I buy the hay stack, ie a little of everything buy buying vanguard funds.
I have some life strategies funds and also many index trackers of theirs.
I did buy some independent shares eg in sole company's but I'm definitely going to sell and stream line soon.
Also read jl Colins simple path to wealth, a book he wrote for his daughter... Then followed Mr money moustache and the fire movement.

I'm too late to the party to achieve fire sadly but the tips are still good.

Waxonwaxoff0 · 06/01/2022 22:55

It's personal. For me I would much rather have my house paid off, but to me my house is literally just somewhere to sleep and keep my things. I'm an extrovert and go out every day, I love to travel, would much rather be out doing things than sitting at home. So any building will do me really.

SunSparkle · 07/01/2022 08:41

@Newyearoldyou thank you so much. I think that will be my goal for 2022 is to educate myself on investing. I’ve just sorted out salary sacrifice to better increase my pension and upped my contributions massively so will focus on some money I’ve got put aside and see where to put it because it’s in a terrible savings account right now. Thank you!

Grumpyoldpersonwithcats · 07/01/2022 08:48

We paid off our mortgage on a previous property.
As soon as we had paid it off we got itchy feet, so we bought somewhere bigger.
I'm mortgage free again and really appreciate the security. I think your approach of paying off your house is sensible, it doesn't stop you changing your mind in the future.

middleager · 07/01/2022 08:59

We moved to a larger house because a) we had outgrown it and b) schools.
If we had not had the secondary school dillemma I think we would have stayed and extended, as the house, while very small, was detatched with plenty of scope for expanding.

I miss that house, five years on. New house is bigger, better location, but semi and neighbours rent out next door and it's noisy.

I'm 48 and we still have a fair whack to go. However, better area means current value of house is surpassing what our old house could ever make.

I do fantasise about being debt free as I want a career change, but worry about the mortgage.
We miggt downsize when our teens go to uni in a couple of years.

ToykotoLosAngeles · 07/01/2022 09:03

Some lenders will go up to 75 and even 80 with proof of pension. 70 is standard.

Anyway, at your ages I would probably move. We are staying put in our terraced townhouse even though we could afford a small detached as we only have one child, but we will be early 50s when paid off so around 10 years older than OP.

Staryflight445 · 07/01/2022 09:07

Pay off the mortgage and then enjoy some living with the extra money before saving for the money you need for more space.
It’s not the right time to buy anyway, everything super inflated.

Bluntness100 · 07/01/2022 09:13

Depends on your priorities. For us, I’d prefer the bigger house at your age, you prefer smaller and mortgage free. Each of us is different, neither are unreasonable.

Mouseonmychair · 07/01/2022 09:13

I brought a 2 bed with decent garden and was mortgage free by 34 ( only a bit older now) I certainly have no intention of another mortgage as upkeep and cost on a bigger house would be too much. I added a garden office on too for extra space though. The lack of mortgage stress is wonderful.

Geom372 · 07/01/2022 09:19

We were in exactly the same position as you. We stuck with the smaller property, our final mortgage payment will be in August and I'm 40, DH 44. I am so so thankful that we made the decision. My health has taken a real turn for the worse and I've had to reduce my hours, being mortgage free, having that secure roof over our head is worth far more to us than a bigger house. It's such a massive relief.

TheGonnagle · 07/01/2022 09:35

We’re staying small and paying it off. I have health issues that could turn into big problems at any time, there was a period where it looked pretty bleak and money was a worry. We decided to stick with something that could be paid on just the one income as security. It’ll be done in 5 years and then we’ll decide what to do next.

TheGonnagle · 07/01/2022 09:36

Wow, cross posts @Geom372!

CharSiu · 07/01/2022 10:01

We stayed in a smaller property though it’s a three bed and has a big garden and paid off mid thirties. Twenty years have passed and due to career progression and investments our pot of savings is bigger than we could ever have envisioned, mainly because some investments did so well for us those two decades ago. Until the pandemic we also enjoyed overseas holidays almost every year sometimes multiple.

The other thing to consider is upkeep, heating and council tax rates. MIL needs to downsize now as did my Aunt but moving when older is much harder. My Aunt had too many memories in her house and her DH died in it so she remained rattling around in a freezing six bed house till she died in her nineties.

dollybird · 07/01/2022 10:04

We paid off our first mortgage at 32, then four years later moved to a bigger house, which also had a garage and bigger garden. We have converted the loft, and also paid off this mortgage (as it was quite small). It's great not having a mortgage to pay, but now with late teen DC often not here, horrible new neighbours on one side and DH health issues, the house is feeling too big and too many floors, so we want to move to somewhere smaller. Something like our last house, but with a garage and bigger garden, but the thought of the whole selling and buying process again is kind of off-putting!

dollybird · 07/01/2022 10:05

Forgot to say, we have been in our current house for ten years now

DockOTheBay · 07/01/2022 10:18

We are wondering the same. Hoping to be mortgage free by 45 (currently early 30s).
Our house is big enough, just about, and in a really nice area. We could add extra like a downstairs bathroom and office. I'm inclined to keep the smaller house and then we could both go part time at 50 or earlier and enjoy more time together, go travelling etc. The alternative is working until 70 to pay for a house that we don't get to spend time in as we are always working!

emmathedilemma · 07/01/2022 10:27

ooh I have this dilemma too.....currently have 2 beds (which in theory is sufficient but doesn't enable me to have a guest bedroom and home office space), and I don't have any outdoor space and could really do with a shed / garage for outdoor gear. BUT my mortgage is low, it's a great neighbourhood and moving for more space would mean a compromise on location and a significant increase in mortgage rather than paying it off by the time I'm early 50's.

caringcarer · 07/01/2022 10:31

I used to live in 3 bedroom house and my marriage broke down with just 4 years left to pay. We sold house and I moved and rented with large lump sum invested. After 2 years I met someone else and a year later I moved in to his small 2 bedroom house. Married a year after that. DH wanted to buy a bigger house so at 43 I took on new mortgage with DH. Kept his house and put my name onto mortgage and rented out as btl. I put down most of my lump sum on large 4 bedroom house with ensuite and downstairs cloakroom. We have had a loft conversion to make 2 extra bedroom and a shower room. We have overpaid on mortgage and only 2 years left to pay. I am now 60, early retired at 56 and by 62 will be mortgage free. We also bought a holiday home and 5 more BTL. We could have settled in his 2 bedroom house which was cramped and my older son had to sleep on sofa if stayed over. If you trade up to a bigger home you will still most likely be mortgage free by time you are 60. Alternatively why not build an extension? You could have a downstairs loo and utility room or even just a conservatory to use as additional living room.

maddening · 07/01/2022 10:50

Totally up to you for your own world. For us no, we moved to a bigger house and a bigger mortgage, but absolutely understand that others would have a different priority based on their own lives.

JuergenSchwarzwald · 07/01/2022 11:11

Our house is quite small and we are mortgage free. I would rather put up with a slight lack of space than worry about mortgage repayments and have the spare income to save, pay for son at university, go on holidays when covid is over and also not worry about losing our jobs as I know whatever happens I have a roof over my head and can downsize to a cheaper area if necessary.

However, I agree that in your mid 30s you've time to upsize a little bit. You don't need to go mad and buy way beyond your means, but add a little space like the downstairs loo etc if it's not practical to extend where you are. DH and I are late 40s/50s so it's a different issue.

Butchyrestingface · 07/01/2022 11:14

I was mortgage free at 39. Impossible to advise though without knowing how many kids you have - I take it you don't have any?

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