To sell my house because I want security at this age?

[burnth]

I’m 38. My mortgage is 270k, I pay 1k a month. Single and probably always will be (no desire for a relationship after some pretty awful ones…)

I had the house valued last week and it’s come back at 495k with a suggestion of marketing it at 525k.

I hate owing so much. Current term is 30 years so I will be 68 technically if it’s ever paid off. I will be gifted 50k later this year and may have some other inheritance down the line but who knows.

I want to buy somewhere with my equity and feel secure. All my family are saying it’s a stupid idea, that if I continue overpaying it will soon drop (I overpay 300 a month) and that in the longer run the house will make more money than a smaller one and I can downsize later on with more equity to either use or keep as savings.

I feel so confused. Most people I know don’t have a mortgage by now and this feels huge. Well it is huge. What would you do?

I’d absolutely do this! How freeing to have no mortgage. Why do they think it’s a bad idea?

I'd say yanbu as it reads that the thing that you want most is to feel secure and you will feel secure by doing this. I'd be tempted too in your position, one thing I want more than anything is financial security so I do get it. Also you could potentially get a really lovely place which would be suitable for a single adult woman with your newer budget so it's a relatively nice position to be in. Not really the same but my husbands aunt downsized from a country cottage to a very nice new build and its lovely. Some people thought it was madness but she's really happy. What sort of thing would you go for?

I’m 43 and currently have a mortgage of £245k. It will be £290k after an impending move. 25 years left officially but will be quicker as we’re overpaying.

So, you’re not the only one!

I hate having a mortgage this size at this age but we weren’t able to buy before our 40s, we want to live in a specific area and we need a 3 bed house.

So I’m wondering about your house - size, location etc. Is it too big? Could you get enough space for cheaper in an area you like? I can’t, but I would if I could. And I definitely wouldn’t be letting your family influence you like this - it’s your house and your money.

In your shoes i’d go for it but only if you can get a place where you’d be happy.

Do it absolutely! I did similar and it opened a whole new world for me with unexpected freedoms. I travelled, worked reduced hours and eventually adopted. None of which would be possible if I’d continued rattling around in an expensive house paying crazy amounts on a mortgage for someone else to inherit.

Have you looked at what sort of property you can buy for less money in the area you want, to decide if you’re happy with it? That would be my first step.

I’m 52 with a mortgage your size! Now is not a great time to move - I’d wait until after the election and then downsize when things are a little more stable 😊

Moving now isn’t an issue for OP who would be buying with the equity and not a mortgage.

We could have had a much bigger house if we’d had a longer mortgage, as it was we paid it off sooner and ploughed the saved mortgage payments into our pensions.

zero regrets, the peace I felt owning outright couldn’t be beaten and it’s enabled us to have very healthy pensions and be in a house that is a comfortable size that we never need to downsize from.

Thank you. If I used equity I have I could only afford a two bed in a similar area. Where I am currently has four bedrooms (two are quite small), nice open plan downstairs with downstairs loo etc, lots of parking and nice garden. I would be saying goodbye to those things but I just hate that ive got this payment every month and that it’s so so so much money to owe hundreds of thousands.

Depends what you can buy! I'm older than you (49) and sold my 570k house, cleared 230k mortgage, bought £330k outright. New house is smaller and further out, but didn't need the size I had. I do love the new house which I think is important- buying something that felt like a huge compromise would have been depressing.

For me it's been great- the freedom of no mortgage is enormous and I feel like a weight is lifted. I've reduced working hours, but I didn't have to, but it's more the freedom- if I wanted to work full time and save a lot I could, or I can trade for time. Depends on your other circumstances. It's not a panacea but I feel more secure that I can cope with what life throws at me.

Being mortgage free is truly liberating, and as a PP said, it opens lots of opportunities you would not have considered with a mortgage. Plus lower maintenance costs for a smaller house usually. I would do it.

Is there a compromise - a slightly smaller mortgage to stretch to something better - we deliberately didn’t overstretch ourselves when we bought and I’m very grateful for it now!

If I were you I would do this! I wrote a post recently about how our mortgage feels like a weight around our necks! (Nearly 350k, late 30’s). We live in an expensive area and have a lot of equity in the house so could downsize and go mortgage free but the children love the house and I can’t do it just yet. The thought of paying off the whole mortgage eventually and for so long does make me feel a bit ill when you see how much you are paying overall (the mortgage overpayment calculator on money saving expert website will tell you how much you will pay and how much is interest over the term)

If you can, and can find properties you are happy with, then it's a great idea. More money for travel, hobbies etc. But I'm amazed you know people who at 38 don't have a mortgage. I'm 54 and still do!

At that age and LTV ratio and ability to over pay I think YABU

more important factors are - do you love the property you are in? Is it near your friends and family and the life you love?

Could you make money from your property eg rent a room or rent whole property and travel/live somewhere else?

Could you buy a property you like in an area you like for equity/cash?

what is your earning potential/career plan in next few years - could you repay more? Do you want to change to lower paying job so having no mortgage would be good thing.

38 and having paid off mortgage is quite unusual in my view. Much more likely to have no mortgage because can’t afford to buy in the first place. I’m SE in UK.

If you can find a house you like, do it now. It would be fantastic to be mortgage free at such a young age. And no doubt whatever house you buy will increase in value whilst you live in it too. Go for it.

I don’t know anyone at 38 who has paid off their mortgage?! I know a 44 and 52yr old who have just taken out a mortgage!

I’ve just reduced my mortgage term for a bit each time it’s renewed. We have about 10yrs to go, but we are looking to buy our forever house (need to consider schools as have a 2yr old). In our late 30s/40s, and our new mortgage will probably be around the £700k mark!!

If you were 55 I would say do it, but you are only 38 - practically a child . If you continue to overpay your existing mortgage, and throw in the £50k you are due to receive, the amount you owe will go down noticeably. You clearly don't have problems with the existing payments if you can overpay £300 a month, so there is no pressure to downsize. I would stay put and look on the equity you are building as savings.

@burnth I would do some viewings of some places in your budget and take it from there. Personally I'd want a garden, at least 2 beds (agree there's no need for you to have such a big house). The money you are saving on mortgage payments could be paid into a pension. What a bonus to be mortgage free.

You are very young to put a finite financial cap on your home and house.

Would you be able to downsize to something that you could see yourself retiring and growing old in? Would it be of a price to enable you to sell in the future and buy somewhere in an area where you would like to retire? And have space for friends to stay etc?

Go with your heart ❤️ We are currently upsizing in our early 50s and I'm not very happy about it but have agreed to. To be mortgage free in a smaller home with all we need, fantastic neighbours, I would much rather stay than get out another mortgage. If I was single I would do what I wanted and best for me so you do this! Xx

Most people I know don’t have a mortgage by now

You must move in very wealthy circles as this definitely isn't the norm!

I would downsize and put the savings made into a pension. As well as have some fun.

We moved for reduced travel time and so upsized and took on a scary sized mortgage at an older age, but will need to and want to downsize for retirement. A pension and having time gets a lot more important as you get older.

You're my age, and everyone I know has a mortgage (or renting). Even the people I know who bought in their early 20s. It's very usual to have paid off your mortgage before the age of 40! But I can see the appeal 😃

I'm just shocked that at age 38 you say most people you know have no mortgage now. Are your friends much older? Or very rich? I'm in my late 40s and my mortgage won't be paid off till I'm at least 65 - and that's with a fair wind behind me.