Buy the house or pay off mortgage by 42?

[BHFEPP]

Just as the title really. I am 38 and could pay off my mortgage by 42 if all is well (got the bulk ready to pay off in chunks already, haven’t done in full as it’s currently invested).

Anyway…I’ve just found my dream home. Absolutely beautiful and exactly where I would love to be. But, it would mean taking out a chunky mortgage and realistically I would be paying it off for many years to come. Part of me thinks go for it and if I ever have to downsize I can, the other part of me thinks just leave it and accept where I am and what I have. For context current home worth 550k. The one I love is 695k.

I say buy the house.

Ohhh this is difficult! How secure is your work? Are you in good health?

How long would it take you to pay off the additional mortgage? It’s not a huge amount extra in the grand scheme of things and you’ve got loads of equity

So only £145k mortgage? I say only as that's a lot to a lot of people including me but if you can afford to pay off a mortgage by 42 it probably won't take you long to pay off another £145k

But, it would mean taking out a chunky mortgage and realistically I would be paying it off for many years to come.

How many years?
How do running costs compare - utilities, maintenance, repairs, etc.
What is your pension provision like

Pay off the mortgage. I paid mine off at 44 and it’s life changing. I do love my house though and wouldn’t want to move

What is your big life plan after 42 and having no mortgage?

What are you going to be doing which you wont be able to do if you move and take on the extra borrowing?

If you balance you at 50 in your dream life in your current house with the dream life in your dream house which life do you want to live?

I was in your position, mortgage free at 40 then bought a house and took on £200k mortgage. Now I’m 50 I’m a bit fed up with it and it’s talking me a lot longer to pay off than I’d hoped because of the cost of living rises. But…..I do love the house and it works for me and the family in so many ways. I tell myself I could always downsize.

£145k mortgage seems really small to me! You’d still have paid it off by 55. I’d move to your dream home.

145k mortgage is pretty small and if you’re overpaying/saving now then I can’t see why you couldn’t pay the new house mortgage off early too. Go for the dream house

Such a tough one! I am 49 and paid off my mortgage a few years ago. I only live in a 2 bed terrace, but it's nice enough and room enough for me and the dog. I only need to work part time, I have a campervan and travel a lot. I sometimes think it would be nice to move to a slightly bigger house, or a stone cottage in a village, but that would mean a mortgage, and going back to working full time, and then less traveling. I really don't want to do that.

How will your life change once you have paid off the mortgage? What is more important to you?

We paid off our mortgage at 40, it was wonderful. We go on a lot of holidays now.
It depends on whether you're unhappy where you are are though, or if it's just not completely perfect. I'd consider moving if you're unhappy where you are. Be sure the perfect house isn't going to end up being a money pit though.

Dream house

I’d buy the house. You can pay off a £145k mortgage quickly.

What does the new house give you Vs the old house? Eg more space as a single person isn't the same answer as more space and giving each child their own bedroom . However I think I'd go for the bigger house if it gives you a better life somehow as 42 is young to have paid off a mortgage.

What seems like a huge mortgage now will look a lot less in ten years’ time. You may still be able to pay it off earlier.

What benefits would paying off your mortgage very early bring?

I bought my dream house. I don't really want to go on holiday as I love my home and garden. The summer is amazing and it's way too hot for me abroad.

We do still have holidays in the shoulder seasons but home is where we are every day and I love it. I would go for the dream house every time.

But only if it's financially realistic.

In a similar position and decided not to buy the house. It would be nice to have more space for the teen years, but then they’ll leave home anyway. This way I can set them up by paying for uni, maybe help them buy a house and retire before I’m past it. Moving house is a waste of money if you don’t have to, 40-50k in fees and stamp duty. And you’ll have to pay again if you downsize.

@BuffaloCauliflower I would basically be paying it for the next 20 years.

@OneZanyPoet good point about not always needing more space

@Ohpleeeease i am not sure really, I suppose I’ve just had it as my goal for so long, the sense of security and more freedom maybe.

@FuzzyWolf when I’ve put it into the mortgage calculator it’s showing 20 years (I would need to keep some of my savings back to pay costs of moving)

You get one life. Buy the dream house. You will soon reduce the new mortgage and you will have the house for as long as you want. Go for it.

Good for you

@HateThese4Leggedbeasts i guess this house I’ve compromised a lot. None of it’s ever really been ‘done’ or to a massively high spec. Garden is big but needs loads of work which I wouldn’t want to do here. The dream house is all done.