'Perfect' house or lifestyle?

[MumofCandR]

I have a conundrum. I have a lovely house which we have extended into the attic and sides and rear. We did the work, it's lovely and has everything I want - double ovens, underfloor heating, well insulated, lovely windows, you get the idea. It's a 4 bed and 2 bathrooms one with a shower and 1 with a bath. Large garden that is hard to maintain, lovely views though. We both work long hours and pressurised jobs and I am heading towards 50... Decent pensions. Over 20 years left on the mortgage at the minute . However we still have some loans we would like to clear and a large mortgage, part of which will renew in January 2027 and will likely increase by £100 mth. We could sell and purchase a nice house we like in a similar area but even nicer location close to lots of lovely outside space. It's a 3 bed though and one bathroom with a bath and one toilet. The space downstairs is similar except it has one less living area - which we currently use in our house for the kids games space. And less storage and smaller garden. But - if we move we would clear some loans and the part of the mortgage that's going up in January and be better off by around 600 mth. We earn good salaries but this money would free up options to travel more with our kids, eat out more which we like, save more.... We would also have 50k leftover which would invest in long term bonds. Our kids are tween and young teen. We love the idea of downsizing the mortgage and loans and having more financial freedom but are scared we would regret the downsize.... Has anyone done this, did you regret your move or has it made life better? Any insight appreciated.

We’re early 40’s with one teen and one adult child living with us. We worked long and hard for what sounds very similar to your home and as a whole family, we love the house and everything it offers us. We’re a family of homebodies though, not hugely into travel, although we go away every other year. We would struggle to go back to one bathroom, it was a pain when we were in that situation and the convenience is priceless to us now. We plan to downsize once it’s just the two of us, and it should clear the mortgage completely when the time comes.

This. Hence why I'm mortgage free and have been for a few years at 54

Yeah my partner was one of 6 kids, ( 4 girls) his parents and an uncle living in a house with one bathroom. He said was never an issue

What do the kids think? For me, it would be a no until the kids were looking to leave home. Being squashed with 4+ adults, no thanks. Having said that, my kids will be young adults by the time I’m 45, so will have plenty of time to downsize and spend the money 🤣

Sorry. I might have missed this but would you be mortgage free on the new house or just a lower mortgage? If it’s mortgage free I would probably do it, if it’s a lower mortgage but clearing debt / having some spare to invest I might wait until my children has gone off to uni (if they’re going) so that you have the extra space / bathrooms whilst in these teen years.

I’ve moved to a bigger house , with a larger mortgage in my late 40’s . It scared the life out of me - the size of the mortgage. However dad to day life was infinitely better. The space was needed , esp the 2 bathrooms and an extra room for teens to have friends around . At 16 they got part time jobs which freed up so much ££ , which allowed us to travel so much more with them . At a time of life where they appreciated travel.
I would do the same in a heartbeat- if your day to day life is better quality then the need for luxury holidays and treats out diminish

Lifestyle. I’ve no desire to have a huge house or feel skint every month, and no way I’d want to have a mortgage until I was 70!

The teenage years will go in a flash then you may have university costs, it’s frightening how fast it comes round. We will downsize (but upgrade) as soon as our youngest leaves, and then we’ll be mortgage free and plan to see more of the world.

I think it would be helpful to know why you still have 20 years left on a mortgage at 50 and why you have loans even though you both earn good salaries? Usually people take out a loan because they don't have savings to cover the cost of what the loan is for. Are the loans going up or down? I would work on building up a savings pot first for emergencies, then overpaying the mortgage. If you currently have no money left at the end of the month to do either, then you have been spending beyond your means and should downsize quickly. You say you enjoy eating out but eating out and having loans don't really go together if you want financial security.

What are you career prospects like, are you at the top of your fields or are you likely to be promoted in the medium term? If there is progression available then I would be reluctant to sacrifice the house. However if this is it as far as salary’s are concerned then I would be more likely to downsize.

Don't think career prospects make any difference if you are spending beyond your means.

i was thinking this too about the cash they expect to free up. moving is not a cheap amusement for whatever reason.

I think you need to consider the knock on effect of losing the additional reception room and where the new "games space" would be in any house moving forward.

We have an additional room for the children to game in and also where they do their homework. We did not want them having a tv or games console in their bedrooms.

Looking forward, my eldest child graduated uni and is living back at home and working from home 3 days a week so needs somewhere to work from.

Bathroom wise the children share a bathroom here and Dh and I have an en-suite. Both boys shower every day and have done since they started secondary school, non-negotiable back then and now is just a great habit.

I think you should downsize to free up more money but consider houses with the scope to have an alternate space instead of just a bedroom for the children if you can.

The showering thing changes as they get older.

No brainer for me…sell the house and move. No point having a lovely home that you are never in and therefore can’t appreciate.

Yes downsize and reduce your mortgage term and your debt. I am surprised you purchased the house if you are still expecting to pay be paying it off at nearly 70, sounds like you over stretched yourself

Just to clarify - We've done a lot of work extending the house, and that's where the debt comes from - it's going down each month significantly and it's never gone up. It has left us with a comfortable home and 50% equity. But it's locked in the house and whilst payments are doable it then doesn't leave much. We always intended to overpay and never intended going to 70. But we didn't foresee £400 mth mortgage increase post Truss and cost of living increases which have had impact. We are paying a lot into pensions and could pay a lump sum on retirement early to mid 60s to clear the mortgage without moving so there is a long term plan but that won't help the here and now and spending time with my kids and helping them at university. We have paid off chunks over the years and have reasonable savings and great pensions. We're tending towards moving to release some money to clear debts and lower the mortgage to prevent the further increase in January and have better cash flow. Thanks for your thoughts and insights.