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Original poster

To move instead of mortgage

10 replies

BeGreatSheep · 23/04/2025 11:46

Currently in a great debate.

In the SE and found a house we like, but mortgage would be 2100 per month (19% of net)
however i am debating - if we moved we would have 0 mortgage and could relax and feel financially free

downsizing in SE isn’t an option as husband is from a cheaper area and will not pay big bucks “for a shoebox”

Jobs flexible, kids at a good age for moving. No real ties other than a couple of friends

wwyd?

OP posts:
Oldandcobwebby · 23/04/2025 14:08

I'd be off like a shot!

Being mortgage-free opens up a whole new world of opportunities. You could invest that £2100/month for the next 30 years. That would be just about £750,000, but at a rate of return of 5%, that gets you a couple of quid short of £1 million in profit, so you'd have £1,750,000 which would be tax free if you put the money into ISAs. Imagine if that was put into a pension, with the 20% tax relief on your investment. Again, with a conservative annual return of 5%, that would give you £2,108,000. Wouldn't that be a treat?!?!

Chungai · 23/04/2025 14:55

Oldandcobwebby · 23/04/2025 14:08

I'd be off like a shot!

Being mortgage-free opens up a whole new world of opportunities. You could invest that £2100/month for the next 30 years. That would be just about £750,000, but at a rate of return of 5%, that gets you a couple of quid short of £1 million in profit, so you'd have £1,750,000 which would be tax free if you put the money into ISAs. Imagine if that was put into a pension, with the 20% tax relief on your investment. Again, with a conservative annual return of 5%, that would give you £2,108,000. Wouldn't that be a treat?!?!

Edited

Yes great to have a huge pension but you also need to live in the now.

19% of your net pay on mortgage is pretty good tbh.

Where would you move to?

Original poster
BeGreatSheep · 23/04/2025 15:21

Chungai · 23/04/2025 14:55

Yes great to have a huge pension but you also need to live in the now.

19% of your net pay on mortgage is pretty good tbh.

Where would you move to?

Show quote history

West, closer to where my husband is from (but no support network) I’m so conflicted

OP posts:
JWR · 23/04/2025 15:25

If £2100 is 19% of net pay you must be earning well and presumably making decent pension contributIons already. What would be the other benefits of moving? Schools, hobbies, family, holidays?

Icanttakethisanymore · 23/04/2025 15:29

What does 'relax and feel financially free' mean to you? Work less? Or work the same and spend money on other things?

Of the 2100 / month some is repayment and some is interest. The repayment is just saving but the interest is the price you pay to live somewhere you can't afford - let's assume it's £1000 repayment and £1100 interest (for easy maths). Does £1100 feel like good value to continue to live where you live vs. moving to the alternative location?

MidnightPatrol · 23/04/2025 15:33

I don’t think there’s enough info for anyone to advise, as it’s about so much more than having a mortgage IMO.

A mortgage at 19% of net income is reasonable.

ChompinCrocodiles · 23/04/2025 15:39

Yes great to have a huge pension but you also need to live in the now

This.

It's such a personal decision and is about so much more than just numbers.

I don't care if it would give us £10m in savings, I wouldn't move away from our area. After spending 12 years living somewhere I felt 'meh' about, we moved where we are now 6 years ago...and the feeling of loving where you live, of feeling joy as you drive home cannot be overstated in my experience.

It's literally transformed our lives and no amount of extra money in the bank would make moving somewhere else worth it.

Of course not everyone feels like that - but only the op knows or suspects how she'd feel about living in x area and moving away from y.

Rosie1990 · 26/04/2025 12:29

I think I’m in same boat!! We could move about 20 mins up the road and buy a place outright so have no mortgage. I think I want to but am torn as like my area and mostly like the house but there are things about it that get on my wick. We have a large combined income and, although we can afford it, I just resent paying the mortgage month on month and all that interest when we could be living the highlife mortgage free. The new house would be smaller but enough for us and a big part of me wants to but also conscious I could regret it 😬

Jmaho · 26/04/2025 12:33

If £2100 is 19% of your net then you're taking home about £11k a month?
You can be extremely comfortable, save and overpay your mortgage on that sort of salary.
If you're not very comfortable on around £9k a month after mortgage then something is very wrong!

Greenartywitch · 26/04/2025 12:46

When I decided to sell and move out of London three years ago I considered two options: stay in the South East and get a new mortgage of about 70K, move to the North of England or to Scotland and be mortgage-free.

In the end I moved to the Kent coast because I was concerned about:

  • losing my existing network
  • less job opportunities (I still work for a London-base company)
  • the fact that I have a health condition that is better managed with occasional support from big London hospitals
  • the weather.

Maybe make a list of the pro and cons?

I also made sure I spend a lot of time in the places I was considering moving to, including in the winter, to make sure I was happy with the lifestyle I would be getting.

I am really enjoying living in my small seaside town.

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