WWYD- Stay put or move?

[SunRainStorm]

Name changed because I'm lucky to have this problem.

DH, three small children and I live in a house we have paid off. It is a comfortable house in an 'up and coming' type of area. It is getting a bit small but we can manage.

The local schools are just ok.

My eldest is starting school next year. We've looked at some houses in a posh established area. We can't afford a fancy house, but can afford an ok one and could work on it over time.

The schools there are in another league. Smaller classes, amazing facilities, so many more opportunities, clearly well funded and supported by wealthy parents over the last 100 years or so.

We are seriously thinking about moving, purely for the school.

We would be able to pay off 2/3 of the new house once we sell our current one. We would have a mortgage over the remaining 1/3.

We can afford it, but it would require some belt tightening. And who knows what will happen with the COL - we might end up stressed about money.

Are we out of our minds to be voluntarily taking on a mortgage right now?

What would you do?

In case it is relevant my eldest has some additional needs and is quite shy and sensitive- I worry they will get lost in the chaos of the current local school.

It really depends how much of a mortgage increase you could tolerate - have you calculated based on worst case scenarios?

We could tolerate quite a bit, but would mean cutting back on various things.

DH and I currently work 4 days each and really like being around for the children while they are small. If we were stressed, one or both of us could go full time.

I like my job but I have been offered more money at a rival company- if we needed more I could jump ship- but I would risk losing the flexibility and good work environment I have now.

I would move assuming that you have calculated that you can afford a mortgage at 10% interest rates. Seems unlikely but it’s sensible to stress test it.

also if you have younger DC it’s worth considering that additional needs can run in families (I’m in the same situation) and think about whether you could afford to reduce working hours or pay for speech therapy or whatever as well as mortgage.

Sorry to be clear, I meant if one of your younger children also turned out to have additional needs

Really good point.

My eldest has hearing loss- the others don't, but I definitely see your point, they could have their own needs.

I think we'd always find money for medical needs, and if they have additional needs I'd rather they be in a better school with more support.

The things that would get cut would be holidays, clothes, eating out and takeaway, and the more expensive activities we do with the children.

I'd also potentially have to cut my maternity leave short if rates shot up to 10%. I'd rather not because this is my last baby

I think the biggest thing would be the shift in mindset- having to constantly think about money.

I don’t think it would affect your maternity leave if you’re currently on mat leave - if you move within the next 6-12 months then rates aren’t going to be at 10%. With a high LTV you should get a rate around 5-6%. But if you take a two or three year fix mortgage now then in theory when you come to remortgage rates could have gone even higher.

I would personally prioritise my childrens education over takeaways and holidays. Clothes can be bought off Vinted. Cut your cloth as they say. School will have a huge impact on the children, whereas choosing whether to go for two weeks AI in Greece versus a week camping in Wales will not.

I think you're right, that's so helpful.

I was telling a relative we were thinking of taking on a mortgage and she looked at me like I'd grown a second head.