AIBU to downsize for lower mortgage despite loving our current home?

[Violetandpurple]

Hi all
we currently own a beautiful home, it’s a 4 bed detached that we have converted the loft so we have 6 bedrooms and 4 toilets. (Edit- we have only lived here for almost 3 years, loft done early this year)
we have 4 biological children and we foster.
our mortgage is 206k total.
there is a house for sale down the road, similar area although where we are now is considered ‘nicer’. it has 5 bedrooms and 3 toilets but is a townhouse. 3 bedrooms are 17ft long so we could easily split one to create an extra room.
our mortgage would go down to 60k meaning much more spendable income each month.
current house value 435k approx other house 275k approx.
I would rather live in a less desirable house and not have financial stress. Partner says it’s silly to leave our dream home.

wwyd?

I’d be really reluctant given you’re in your dream house which it sounds like you’re done a lot of work to make how you wanted it. However if it really means you would otherwise have to return to work full time etc then I’d consider it, is there no other way or something else you can save money on? Seems a big gamble??

No I wouldn’t move. Maybe once the kids have left, but 3 years is no time to have spent in one house.

The detached part is something to consider. So many threads on here with neighbour problems as they are too close for comfort.

We downsized from a 4 bed detached, 4 toilets house to a 3 double bed town house semi and became mortgage Free!! I was just turned 40, New house was in a better secondary catchment! Now eldest Off to uni. We’ve freed up £400 a month on th house! It’s great, having the financial security xx

I wouldn't move to a 3 storey house unless I was the right side of 40! Dd2 lives in one and whenever I stay to look after the dgc my opinion is reinforced. Recently I was looking after my baby dgd and I was taking her out in the pushchair. I realised her bodysuit was wet (sicky baby) so had to go up 2 flights of stairs with dgd to get clean clothes. Then back down again!

Id stay. 60k is neither here nor there if you look at the bigger picture. If money is a little tight why not extend your mortgage term to bring your payments down then later down the line when in a position to do so reduce the term again.
Im sure longer term you would also increase the value of your property in this house than if you downsized.

How long do you have left on your mortgage. £206000 isn’t a high mortgage these days.
id stay put.

Depends on the rest of your financial situation, whether you are two-income or one income, how secure your jobs are and how much difference having the extra money each month will make.

We downsized (actually we upsized but to a cheaper area) but we cut our mortgage by 1200 a month so it made a big difference.

I would stay detached if you can, if you decide to move. A townhouse would be too noisy for me. Best wishes with whatever decision you make

Your current mortgage seems low buti dont know what your income is

In my experience the belt-tightening bit lasts a couple of years and then the income starts to catch up with the mortgage and it gets easier. If you can actually manage where you are and hang on for a while, I wouldn't be moving from what sounds like a dream home. After only three years living there, and the capital investment of loft conversion, you probably won't make much of a profit from it anyway and you could actually lose money depending what house prices have been doing in your area.

I’m not sure where you have imagined that figure from but we don’t even get £300.. for 24/7 care.

I agree. If you've just done your loft I'm guessing all your decorating is done too, the value is probably peaking. But don't forget how hard it is to sell at the moment, you don't want to put yourself through a lot of stress for nothing.
We've always kept our mortgage low to avoid unnecessary stress, my DH has been made redundant several times and having a small mortgage was a godsend. People sometimes argue that you won't make as much on your house in the long run, but house prices probably won't rise in future as they have in the past - and if you renovate that is how you will make your money.

take home 2467 a month.
1 income family.

I’m with your H and wouldn’t move - you could be wealthier but unhappier in a smaller house with very close neighbours.

No I absolutely wouldn't.
Moving will cost far more than you think and you don't know what unexpected costs you will face in the new house.
I would never downgrade area unless there was no other choice.
As children grow you need more space and more storage.
I can think of so many more reasons as well!
Personally think you would regret it.

As much as I appreciate how you would like extra money by reducing your mortgage, you describe your home as your dream house and have been there for less than 3 years. You describe the current financial situation as OK which is where alot of people would like to be . I would be staying in the dream house.

You said you worked part time, were you referring to the fostering?
If you are not caring for foster children on a regular basis( I appreciate it can be add hoc), it may be more financially beneficial for you to seek alternative employment.
I appreciate you wanting to be at home but needs must.

I wouldn’t live in a house that wasn’t on his own so for that alone I’d stay. Neighbours - bleurgh !

@Violetandpurple Do you claim Universal Credit? If you don't, you should, because unless you have more than £16,000 in savings, you would be entitled to:

Couples element £666.97
First Child £351.88
Second Child£303.94
Third Child £303.94
Fourth Child £303.94
Total:1930.67

Income: £2467 - allowance of £710 (higher because you're mortgaged) = £1757
Deduction due to income £1757 x 0.55 = £966.35

Total Universal credit: £964.32

If you get a disability allowance for your daughter with additional needs, that amount would go up to:

If DLA middle rate care, £1338.45 (Care lower amount plus carer's premium added)
If DLA high rate care, £1688.37 (Care higher amount plus carer's premium added).

It's a little left of your initial question, but it might influence your decision.

I see your dilemma. Moving is a big step but an extra £650 pounds a month would be nice. Have you worked out, after all the moving and renovation costs, how long it would be before that £650 was actually noticeable? Even if you only spent 20k on the move in total, it would be over two years and half years before you start making any “savings”.

Personally I’d probably stay put, but only you know how tight the day-to-day things actually are and if that stress is worse than the stress of moving.

I think this makes it worth it tbh

I would be looking to make an extra £650 a month instead - that’s less than £100 each a week! So that would be 3 hours overtime on a Sunday for me for example

after your mortgage you have less than £1500 for 7 people?

Your mortgage is very low. No way would I move.