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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

to increase our mortgage to move to a house that is no larger but has a lovely garden and is in a better location?

32 replies

mrsseanbean · 23/01/2009 09:56

We would have to increase our mortgage by a third to around 50% equity, assuming the low offer we are considering is accepted. We're considering having an interest only mortgage for a year until I am back at work,(I am a SAHM at the moment.) The interest-only option would be less per month than we currently pay. If we were on a normal repayment mortgage we would pay £150 extra per month, so to give us a decent lifestyle, I would only have to work part time and hopefully not at the stress level I was before.

The house is in a beautiful village location where property doesn't often come onto the market.

AIBU to be considering moving somewhere no larger overall, and with smaller rooms, than our current house, just to get into my dream location?

PS There is a great village school about 3 houses away from the village house. I like the house where we live now but not the location and the school is dreadful (I know the deputy head and pupils are excluded for knife carrying at 8. )

Having written all this down it sounds reasonable-ish, but I am nervous and need your opinions please!

OP posts:

RubyRioja · 23/01/2009 09:58

This reply has been deleted

Message withdrawn at poster's request.

talulasmumII · 23/01/2009 09:58

yanbu...we did the same thing a few years ago....never regretted it.

IwishIwasmoreorganised · 23/01/2009 09:59

I'd go for it as long as you're sure it's not going to financially cripple you (when interest rates go up again)

GrapefruitMoon · 23/01/2009 10:00

YANBU providing you can keep up the increased payments/jobs are secure/ you can easily sell your current house.

I would never move to a village myself but if it's the sort of location you would be happy in and the school is better it would be worth it.

tumtumtetum · 23/01/2009 10:00

Sounds good to me. Living in the place you want to be is the main thing IMO

Original poster

mrsseanbean · 23/01/2009 10:04

If we stay here we would be worse off when ds is school age I think, as we would have to send him to an independent school and I would have to go back into full-blown working.

OP posts:

violethill · 23/01/2009 10:13

Seems like an obvious decision then. Though do look ahead... interest rates won't be low forever. I wouldnt stay on interest only for too long either - that mortgage has got to be paid back some time!

muckypups · 23/01/2009 10:15

We did this last year and best move we ever made. The house isnt ideal but the garden, the woodland walks and the local school more than makes up for it. Plus we have permission to extend the house so will all be great in anohter year or so. good Luck xx

cory · 23/01/2009 10:16

Sounds good to me

Original poster

mrsseanbean · 23/01/2009 10:19

Yes I am thinking long term as well. I don't want to stay interest only for long, 6 month would be ideal, until I get a part time job. We wouldn't need childcare as my parents live nearby and have said they will look after ds until he starts school while I am at work.

Also, and I hate hate hate thinking about this and do not want to factor it into the decision, but, still it is a fact..... when my parents pass away (they are 70s) I am due a large inheritance which would more than clear the mortage.

OP posts:

samsonara · 23/01/2009 10:33

Yes if you can manage the financial side of things it's sounding good, the joy you will all get from having the lovely location and garden and a great school means makes it very attractive.

talulasmumII · 23/01/2009 10:46

mrsseanbean...(you think like me)...awful to think it, but when i took on a mortgage the size of africa to buy this place, i knew i would be able to pay alot off with inheritance.

cornflakegirl · 23/01/2009 10:50

I really wouldn't factor in the inheritance, on purely pragmatic grounds. If your parents got to the point where they couldn't care for themselves, that could make a very large dent in any inheritance...

talulasmumII · 23/01/2009 10:52

ummm...i'd have them living with me, but you're right, can't take it for granted.

Original poster

mrsseanbean · 23/01/2009 10:54

Yes, a sensible point Cornflake, but I would not want my parents to go into a home. My mum looked after her mother in her own home until she passed away, with some respite care. I would hope to be able to do the same. Also, luckily, my parents have more than one property.

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CarGirl · 23/01/2009 10:55

ditto what cornflakegirl says, do not really on getting any inheritance.

I would do it, sounds much cheaper than paying for a private education just start a tight budget now so you can perhaps pay off some of the capital even whilst on interest only.

namechangepleaseexcuse · 23/01/2009 11:00

A home is the place and facilities too, not just room size, and if you can afford it, why not?
I'd beware relying on inheritance because, as cornflakegirl said your parents may need to use their money to pay for their own care. Even if they live with you like talulasmum medical care can be expensive etc- and they may even outlive you!
An important thing to take into consideration is- do you think you'll be able to sell your present house?

cornflakegirl · 23/01/2009 11:00

I didn't necessarily mean going into a home. Three of my grandparents had dementia for several years - you generally need extra help with that, and I think it's usually means-tested.

Anyway, I'm not trying to depress anyone - and the house sounds lovely!

overthemill · 23/01/2009 11:03

we moved to a fab location horrid smaller house and although i LOVE where we are, i do from time to time yearn for more room esp now the boy is so TALL!
so, think about whether you could really cope with smaller rooms, stuff like smaller kitchen is a real pain in the arse

tootyflooty · 23/01/2009 11:18

go for it, it sounds like you will have a better quality of life, you seem to have thought it through, moving house doesn't always have to be about moving into a bigger property.

Katw3kitts · 23/01/2009 11:22

Could you extend the ideal house at all in the future ?

Agree with overthemill in that size isn't really an issue with toddlers but teenagers in a confined space are a whole different scenario !

wasabipeas · 23/01/2009 13:32

Interest-only mortgages are a real false economy
For every month you spend saving a couple of hundred pounds, you'll add extra months of full payments to the end of the mortgage
You'll be miles better off trying to find the extra £150 and then not having the extra months or years at the end of the mortgage

MikeStand · 23/01/2009 14:44

Do not bank on inheritance. My great grandmother lived to 99 and spent years in care homes. My grandmothers large house had to be sold to pay for her care and when she finally passed away there was very little left. You cannot imagine how much care of the elderly costs. I think it is rather mercenary and in poor taste to think I'll be alright I'm due a large windfall. They might decide to leave it to charity.

cornflakegirl · 23/01/2009 15:34

MikeStand - it's not mercenary. It's reasonable to expect to be the main beneficiaries of your parents' will (along with siblings). It's just not a good idea to rely on it.

Original poster

mrsseanbean · 23/01/2009 16:58

Mikestand - " I think it is rather mercenary and in poor taste to think I'll be alright I'm due a large windfall."

I think it in poor taste to put words into my mouth - I never said that; if you read my post again I made reference to the fact I hated even to think of my parents passing away, and it wouldn't be a factor in the decision! But the fact remains I am the main beneficiary and they have a large estate.

Anyway, this was not intended to be a discussion about inheritance, and that part is irrelevant really. I will receive the inheritance wherever I am living.

I am in fact loath to take on extra debt in the current climate. But I have my son's best interests at heart.

Thanks to all those who have given practical help and opinions.

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