mortgage dilema

[mortgageworries]

hi everyone,
I've got a dilemma. My mortgage is up for renewal Dec23. The payments will go up and it would be a struggle to pay or have any kind of lifestyle.
I'm a single mum with two kids. I've got around 28 yrs left on the current mortgage.
My options are:

1. wait and see what happens. I have a stable job and good credit rating so might get a good deal. Stay put.

the pros are: a neighbour who is a source of support, near kids school, near the gym and afterschool activities, near exciting places in the city where we live, a lot of storage and space, can host people here, friends nearby and no hassle of moving cons: we live on a main road and there is noise and pollution, house is not well insulated and heating costs a fortune, don't have money to do any renovations and deco is ok but dated 2nd option: sell the house, might be able to get £120-140k and can then try and use it as a deposit for a cheaper house to lower mortgage payments

pros: cheaper mortgage and possibly money for renovations, can make a nicer house for us, cheaper utility bills, could move away from main road, could try and choose a house near better highschool for when they go, less pollution and noise, more money for going out etc., less housework if smaller house maybe

cons: house might be away from main road but would have to be in a less exciting location, away from friends, further from their current school probably no option to walk to school, away from the supportive neighbour, less space, hassle of moving,
any advice would be highly appreciated

If you’re willing to downsize in the long run there wouldn’t be much harm in going interest only for a while or extending the term. You still need a long term plan to pay off enough equity to buy somewhere suitable outright but you don’t necessarily need to pay off the house you are in. House prices have probably already dropped so it’s not a great time to downsize.

I don’t think moving costs are likely to be anything like £20k though unless you did a lot of work.

This totally depends on where you are

there has never ever been a time when all houses drop by 10%

Some will drop by 30%, others will stay stable
Some will dip and quickly recover. Some are still not back up to prices they were in 2008

Dont make any decisions based on a very broad average number for the entire country

Mortgage interest rates are dropping at the moment compared to a month ago. Personally I'd hold fire & ask my employer for a pay rise, particularly if you've not had one for some time. as others say the cost of moving could make things even more difficult.

Stay.
Its not worth the stress & upheaval and it costs money to employ a solicitor/do survey on new property/pay a removals firm etc