AIBU to go to the top of our budget for a bigger house?

[LoftyOtter]

We’re currently mortgage-free but considering moving to a bigger house as our current home is getting too small for our growing children. To do this, we’d need to borrow £275,000 over 35 years. Once the mortgage and all bills/food are paid, we’d have around £500 left each month for savings and emergencies.
Right now, we’re on one income as I’m a stay-at-home mum, but I plan to return to work part-time in 3-5 years, which would ease things financially. That said, it’s hard to ignore how comfortable it is being mortgage-free—we don’t have to worry about unexpected expenses or big financial shocks.
Would it be crazy to sacrifice that security for more space? I keep going back and forth between thinking it’s worth it for our children’s sake and worrying that we’ll feel too stretched.
Has anyone been in a similar position? Any advice would be really appreciated!
We are both late 30s.

I think you'd be mad to do that.
I would much rather borrow less and buy a house that needs a bit of work, then you're at least adding value.

I wouldn’t do it. Holidays, orthodontists, car, new fence etc etc, it all adds up and £500 a month leftover would be tight.

A mid level teacher isn't ever gonna be earning mega bucks unless there's a lot of promotion going on. OP what's your job? Will you be the higher earner?

We have always lived in a small house (1000 sq ft) with a small mortgage (it's just gone up with the new rates but still only a grand a month) which leaves loads left over. I'd much rather have holidays, no worries about paying for university, driving lessons etc. teenagers are expensive. Also less cleaning to do and just a nicer life. Make your small home pretty and lovely and the size doesn't matter!

Also to the pp saying kids go to local universities - SO many of us live nowhere near any universities at all! So this isn't even an option for an awful lot of people. Never understood why some people can't realise we don't all live near big towns.

You have just inadvertently proved my point. If you believe things have changed massively in the last 10 years, they are going to change again "massively" before OP's kids are of uni age.

Thank you so much for all the replies. Very insightful and definitely has given us food for thought.

The reason why we are mortgage free is due to an inheritance 🙁.

We would be taking the mortgage out for 35 years until I return to work - then we would reduce the term. A mortgage at the top of our budget would be £1250 which I thought was ok.

I think the advice from this is to invest in property, however, maybe not stretch too far with the borrowing. Now we just need to decide if we buy the house that needs work done to it, or wait for a year and see what comes up.

For those saying £500 is not enough to save at the end of each month, how much do people usually save?

For those saying £500 is not enough to save at the end of each month, how much do people usually save?

When you say £500 left to save what do you mean? Long term savings? Holidays? Christmas? Birthdays?

Re savings, we have the following approach (a la Dave Ramsey)

£1,000 - pot for small emergencies like a new washing machine. Anything spent out of here is topped up the following month
3 months expenditure - in another account incase of redundancy (should be 6 but we're working towards that)
Investment savings - S&S ISA, retirement savings

Generally pay off holidays once booked so don't save for those.

There is saving and there is saving. £500 a month is perfectly reasonable but only if it is genuine savings not holiday fund, Christmas fund, "oh I forgot to incide my bimonthly haircut" fun etc. Don't look at food, bills and petrol and think you have £500 at the end of that. Use money saving expert budget planner. I have about £700 left at the end of the month but when I plug all the extras - mot and car service, holidays, Christmas and Birthdays, odd classes and workshops I attend a couple of times a year, clothes and any ad hock purchases, I basically end up with 2k at the end of the year of legitimate savings.