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

[mrsseanbean]

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!

I wouldn't increase my mortgage for anything in the world right now, and I say that as someone who is fairly financially secure. If I really wanted good schools/location, I'd move somewhere that cost the same / was cheaper in order to get it, but in this climate NO WAY would I take on a bigger mortgage, especially not for no extra space.

if you can afford the extra if mortgage rates go up,then yes i would move

houses are all about location and if near a good school as well, think you cant fail

First of all, I would move to a smaller house just to have a dream location and a good school.
I agree with wasabi about interest only being false economy. You would be better off selling your house and renting in a dream location until house prices fall even further!
I also agree with Mike. My father is currently in a care home. My mother bequeathed her half of their property to my sister and I when she died. However, my dad's share of the property is being used to fund his fees. There will be nothing left to inherit.
Good luck with whatever you decide.

There's nothing to rent there though Mipsy. The only other property for sale currently is a Savills jobby at 2.5 million. I would love to move but have deep rooted guilt about increasing our debt when the house we have is perfectly adequate, albeit in a less illustrious location.

Are you really unhappy with the school? If so, go with your gut instinct. I am in a house I know I don't want to be in for the next 10 years. I never feel settled.
I understand where you are coming from.

It's that old property cliche Mipsy; where we are is a case of 'right house, wrong location'. We are in a great 1920s semi, lots of lovely original features, very spacious, but a busy road and a worrying school. We can stay where we are until ds starts school (he is below school age at present) and either hope to move at a later stage or pay for him to be privately educated. I love the location of the otehr house but it is a bit 'cottagy; which I know some people love but not really my thing. However, I woiuld compromise if it meant a better/happier/healthier life. But I hate even being in debt, let alone increasing it. Part of me says 'stay where you are, get a job, pay off more of the mortgage' then review the options when ds is school age. But by the the market may have risen. It's a toughie. If we don't get out of town now, perhaps we never will.

We were in your situation 4 years ago,Loved our house but not the area or schools.When a house came up for sale in our dream location,we took the plunge.We knew that houses here come on the market about once every 10 years,are very expensive (ours wasn't,due to being run down),and very very sought after.It was now or never and we didn't regret it.