Downsize early before re-mortgage?

[DMJ45]

I would be grateful for any opinions on my housing situation as I’m going in circles about it.

I live in a 4 bedroom semi detached house near to my son’s primary school. I have done up the house so it doesn’t need anything major doing, however it’s now far too big for a single parent with 1 child. I feel like I never stop cleaning it or doing the garden! When my son is at his dad’s house I feel like I rattle around it.

I owe about £280k on the mortgage. I had it valued last year and would hopefully get £700k.

I am due to remortgage at the end of October and will be paying more each month as I won’t get the same interest rate. This may be difficult as I find my job stressful and demanding as it is and I don’t feel able to manage more work/days in work.

I could move to a smaller property in the town nearby which would be closer to a secondary school for my son and would cost roughly £340-380k.
So do I stick it out for a few more years, keep paying off the mortgage and then sell it? Or move when the mortgage is up and be mortgage free on the new house?

I'd downsize and be mortgage free. Not having to increase your work hours and no need to worry about mortgage increases is a much easier life.

I’d move.

In those circumstances I'd definitely downsize.

You could be just not mortgage free but have money left over plus presumably a property that's cheaper to run and plenty big enough and in a good/convenient area.

I’d move.

100% move. This is our plan in a few years as it’s just us rattling around in a 4 bed detached. We’re thinking a 3 bed semi or maybe even a 2 bed. If we wait about 8/9 years, we can buy outright.

Thank you for the replies. I think it will be best to move. I feel like I get some family pressure to stay put & keep working as hard as possible but that’s not right for the 2 of us

Unless your family are going to work to pay the mortgage and larger bills and help you keep up with the cleaning and gardening, it's not up to them.

Do what's best for you. There's a lot to be said for restricting your home to what you need rather than what society tells you you should want because it gives you the freedom to work less and also to do something more interesting than keep up with a large house and large garden.

I’d downsize too. Infact this was our plan as we have to pay off our mortgage in four years. We’ve just come into inheritance so that will pay that off but we still plan to downsize and reduce our bills.

I think that downsizing is a good idea. If you can find a cheaper house near a good secondary school and be mortgage free it gives you the following:
A) Not trying to re mortgage when rates are higher
B) Not having to continue to pay a higher amount each month
C). Not having to work more hours to afford this
D) a house with less maintenance, work to do on it, lower bills and possibly less council tax.

Then selling your house and being mortgage free gives you more money to save into your pension or to put some money aside for your child to have at the university stage or later. It might give you the option of working less hours when your older or retiring sooner.

So what if you get some family pressure to stay were you are. The reality is they are not dealing with a higher interest rate and how it effects you and your lifestyle.
You don't want to work more hours than you do currently either in what is possibly a stressful job.

I would look at getting your current home valued and get a redemption figure for your current mortgage now. That will let you know what your budget is for a mortgage free house. Then look at houses near the school you want your son to attend.

If you have some money over from this I would go an independent financial advisor and get their advice re putting more into your current pension, saving and investing.
Still live as if your paying a mortgage each month of say £300 plus a month and use this cash for saving, investing and paying more into your pension.
In time you maybe able to work less hours or retire early.

Paying for independent financial advice now could cost a bit but it will help you make the most of your money going forward. It could help you in time to work less hours or to retire early.

I’d move.