Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

Would it be silly to increase mortgage back to 25 year loan when we're 40?

25 replies

Itsaburrdiee · 10/08/2013 07:49

Our plan has always been to move from our current 3 bed semi to something bigger. Our current house is fine, our children each have a bedroom but there is only one bathroom and one reception and storage is poor. I can imagine the house feeling claustrophobic over the next few years as our children grow and one bathroom is certainly not a situation I want to be in with two teenagers!

With low interest rates likely to continue over the next few years I think we might be able to think about moving in the next couple of years and if we extend to 25 years not paying much more than we currently are (we are overpaying) and the likelihood is over the next 5 years I will increase my hours again and my husbands wage is likely to increase.

In theory it's probably fine and we'll be able to overpay and reduce the term again but it's a worry starting again. The other consideration is we will be 50 when our eldest (potentially) starts university and it is highly unlikely the mortgage will be paid by then but if we stay put and possibly add a bathroom to the current house we could possibly have the mortgage cleared and have more disposable income as a family and later to help subsidise our children through university.

What do you think? Should we stay put and extend with more disposable income or get a larger family house but less money to help children in the future?

OP posts:

MarjorieAntrobus · 10/08/2013 07:59

I'd move if I were you.

noisytoys · 10/08/2013 08:03

I'd move too. It is normal to pay a mortgage until retirement and the extra space will benefit you immensely. It will make a huge difference

yetanotherworry · 10/08/2013 08:03

Would you be able to overpay on a new mortgage? We took out our mortgage at the age of 40 but pay a little extra every month in the hope of paying it off earlier (and to give us a bit of leeway if interest rates go back up).

Original poster

Itsaburrdiee · 10/08/2013 08:18

Initially we wouldn't be able to pay any extra but I currently work three days a week and would plan to increase my hours when our youngest is about 7, in 4 years time; so if we moved in two years that would be two years into a four or five year fixed rate. The other likelihood is my husbands wage. He graduated in 2010 so is still early on in his career and has potential to earn more. The plan would be to overpay as I really don't still want to be paying a mortgage at 65. It also gives us a cushion for the inevitable increase rate rises.

OP posts:

mizu · 10/08/2013 10:11

Not silly to me - I am 40 and we are planning to buy next year - when I will be 41. Never been able to before.

RedHelenB · 10/08/2013 14:56

You could look to repay mortgage over less of a time, say over 20 years. Having disposable income is definitely a GOOD thing though - what if one of you suffers ill health & needs to stop work/cut down hours. My dds share a bedroom but if we had moved to a 4 bed before my divorce I would have had to lose the house - this way I will have the mortgage paid off when I'm 50 & I don't have to work full time to support as mortgage. if you like where you live apart from the size I would think very carefully before moving, & remember bigger houses cost more in upkeep. council tax etc. And take more cleaning!!

PearlyWhites · 10/08/2013 14:58

Sound silly to me but I have four dc in a three bed with one bathroom .

Original poster

Itsaburrdiee · 10/08/2013 18:04

Initially it would need to be 25 years to make the payments feasible but with a view to bring the term down but allowing us a bit of flexibility should something go wrong.

Pearly whites, yes I swing between both viewpoints. There are plenty of families managing with the same or less space. Perhaps I'm thinking the grass is greener and should stick with what we have.

OP posts:

Original poster

Itsaburrdiee · 10/08/2013 18:06

And yes, Redhelen, the thought of cleaning 3 toilets is a drawback!

OP posts:

Castlelough · 11/08/2013 00:55

Hi!
I would say to go for it if you feel you can afford it. As you say yourself, you hope to both have better earning potential in the future to overpay on the mortgage and reduce the term (which I think is a good idea!)
Personally I believe that the space you live in can greatly affect you, and if you think life would be more comfortable in a house with more storage space/extra bathroom/extra reception room now is the time to make that move!

That said, growing up we were 4 dcs and two parents in a 4 bed, 1 bath semi. The bathroom was rarely an issue despite there. being 4 women in the house! My mum was very progressive (in the days before ensuites became the norm!) and had a sink plumbed into the bedroom next to the bathroom. It was 2x double chipboard wardrobes built in with a sink and mirror in the centre - very snazzy! That might be an option of sorts for you?

Talkinpeace · 11/08/2013 19:44

Extend the house .....

we did that a couple of years ago. Best move EVER
we now have
three full size bedrooms, guest bedroom, bathroom, shower room, living room, family room. utility room, cloakroom, huge kitchen diner, my office and outside, pedestrian access and DH's workshop
just by building on half the drive, extending backwards and converting half of the loft
and we'll have paid off the full cost in another three months
my kitchen was designed by me from the ground up
and we had no moving costs..

Original poster

Itsaburrdiee · 11/08/2013 21:01

There isn't a lot of space for extending, we would probably have to lose the garage and could only have a single extension due to close proximity to neighbours upstairs windows. It is a consideration though.

Is it a lot cheaper to extend than move then? We would want as a minimum another reception room and bathroom.

OP posts:

Talkinpeace · 11/08/2013 21:07

my side extension is 1.1m wide but combined with LOTS of knock throughs and steels its GREAT
we extended 3 m back on the ground floor and 2m back on part of upstairs
we lost the drive but kept a walkway
garage was rebuilt as "workshop"
it cost a LOT
but was utterly worth it

if we'd moved, to buy what we now have somewhere else would have cost three times as much

Original poster

Itsaburrdiee · 11/08/2013 21:15

Ok, that's interesting. How do you get quotes and is it pricey?

OP posts:

Talkinpeace · 11/08/2013 21:20

it came in at around £1500 / sqm from start to finish
I do accounts for builders so had rather a head start!
personal recommendations are the start and finish on choosing builders
until you've seen their finished work you know nothing

Original poster

Itsaburrdiee · 11/08/2013 21:24

Thanks - we know no one, however we won't do anything for a couple of years. Gives us some time to ask around.

OP posts:

BikeRunSki · 11/08/2013 21:28

Would anyone actually give you a 25 mortgage in your 40s? When I was 29 I was told 30 was old to be taking out a 25 yr loan, but that was 13 yr ago.

RedHelenB · 11/08/2013 21:30

Yes they would, as the retirement age is now later.

WaitingForMe · 11/08/2013 21:47

Isn't it fairly normal to be 50 when your kids go to uni? I'll be 48 assuming DS goes and I felt pretty average having my baby aged 30.

I'd move. We stretched to have the house we do (bought then extended) and even though the kids are only 8, 5 and 8mths I love love love not sharing a bathroom with the stinky little oiks with their mountains of bath toys, messy towels and shampoo declaring nit-killing properties. My bathroom is like something out of a spa hotel. Not because it was expensive but because it stays white!

agnesf · 11/08/2013 21:51

I would really look into the cost of moving house.

Take into account the cost of estate agents, solicitors, removal co and most importantly stamp duty and then decide whether you couldn't spend the money better on an extension.

We hav covnerted out garage to a room and its fab - totally worth the cost.

ajandjjmum · 11/08/2013 21:59

We pushed ourselves to move into our house when the DC were young, and have had many happy years in our home - which we will ultimately downsize to contribute towards our retirement income.

To us though, the most important thing is that we have all been able to enjoy 'home' as the children have grown - I always feel it's rather a shame when people move into a larger house when children are in their mid teens (and possibly moving away within 3/4 years) - although I realise that financially it's probably far more sensible!

Like Castlelough, I believe that your home can make a huge difference to your happiness and well-being.

Tasmania · 14/08/2013 22:23

Most FTBs are in their 30s these days, with 30-year mortgages. Wouldn't that be the same as a 25-year-mortgage for people who are 40?!?

mercibucket · 14/08/2013 22:42

i wonder about renting for a few years - so bigger house for a few years but then downsize when they go to uni by moving back into the old house. may be mad idea?

Silverfoxballs · 15/08/2013 01:36

This reply has been deleted

Message withdrawn at poster's request.

newlifeforme · 15/08/2013 15:39

I would extend if the plot is a reasonable size.The costs of moving can be high so do look at the options.A garage conversion can be brilliant.We had a study & utility room which gave great storage.you could check your neighbouring properties on the council planning sites to see how other similar properties had been extended.

Ultimately it will come down to the costs, what will it cost to buy a 4 bedder vs costs of extending (if possible).

Flip