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.

dream house and i really want to see it 😂

No because I wouldn’t want to commit to a mortgage to 62. A lot can change health wise in 20 years.

We moved from a £220k home to a £550k one during lockdown and just paid it off at the start of the year 🎊🥂. We want to upgrade soon but nothing suitable at the moment in our area, so might have to build our dream home (we have quite a lot of land)... I say buy the house...♥️

Probably need more information to give an opinion!
On face value the fact you plan to have paid off a house worth 550k when you’re 42 would suggest you’d easily afford to take on the extra mortgage and move.
What isn’t clear is if you had a big down payment / inheritance etc that helped you get this far? The reason I say this is that it doesn’t make sense how it would take 20 years to pay the extra 100k off when you’ve managed to get so far with your current property.

if it’s your dream house and location I’d be inclined to say go for it but I think it really does depend on whether it will impact your quality of life, ability to slow down in later years etc.

You may not need the extra space in time but unless the housing market falls it’s an investment and you can always downgrade later

Buy the house!

42 is young. Buy the house.

I’d buy the house

Go for the dream home £150k mortgage is not chunky - it’s a small percentage of the equity you’ll have. As long as you have a relatively secure job I would do it.

Why not get a home design type and separate landscape professional to have a look and show you mock-ups of the possibilities?
it’s amazing what moving a wall or really making the most of your garden space with strategic placement of trees shrubs and colour can do - potentially loads cheaper too

Your reason for the new property being dream like isn't worth it, I don't think. Someone else has done it up. You could pay a project manager to do that for you.

If you're only 38 you could potentially be living in your dream house for another 60 years. Id go for it!

I did it - four years ago. It’s a bigger mortgage - but I still get a little thrill every time I open the front door.

It’s beautiful, and the area is perfect. In walking distance of my elderly parents, bus stop straight into work. Future proofed.

it’s a very personal decision - it depends on what your priorities are. I will hopefully enjoy this home for decades to come.

It sounds like it isn’t a huge risk - think about what your have to sacrifice. I have slightly less to put on savings every month and take less long haul holidays. I’m fine with that. But that’s me

I’d say 38 is far too young to be limiting your dreams and ambitions!
If you can afford to pay the new mortgage without sacrificing pensions and emergency funds and all the other boring stuff then go for it.
You're a long time dead but at 38 you've hopefully got a long time alive yet. Might as well spend those years in a home you love.

We were mortgage free at 32 and 36, upgraded to our "forever home" taking on a £150k mortgage... worth every penny BUT we did go from a 120 square.metre house to a 230 square metre one, so a really tangible difference for the price and we were at a life stage with 4 kids under 9 so we knew we'd really need the change.

Being mortgage free is pointless if you're stuck in the wrong area or a too-small house.

I think I might move to the dream location but look for a cheaper property there.

I would absolutely pay off. There's no price you can put on peace of mind.

Buy the house!

Do a list of what you need to do to your present home to make you love it, and what it would cost. When you have done that workout what it would cost you to move hidden expenses extra furniture for example. Using professional’s I achieved what I wanted and paid off my mortgage. Good luck to you.

I would stay, pay off the mortgage, and then enjoy making your current home as lovely as possible.

I say just pay the mortgage, retire early and you can rent multiple lovely places anywhere in the world with all your time.

Buy the house. That's how it works, gradual trading up. Nothing gives more quality of life.

@goodnightssleepbenice had three quotes for the garden and all been in the region of 30k which just seems absolutely insane!

I'm curious as to how you are in a position to have paid off a £550k house by 42 (presumably after working 20 years) but to then take 20 years to pay off an extra £150k.

I probably wouldn't, but that's because I'd rather spend my money on travel. It all depends what is more important to you.

Never underestimate the luxury of space, even if there's only two of you in the house. I would try to work out a way to pay off the additional cost off in 10 years and buy your dream house.