Which of these would be a better financial decision?unable to make this financial decision please please help

[AnnieTal]

we currently live in a house worth 365k with around 180k mortgage for about 32 years roughly around 700-800 payment per month,I am a stay at home mum(8 month baby) and a sort of major chunk of my husband's salary goes towards this 700-800 mortgage payment per month so in order to avoid this and save a bit if a compromise on the commute front and go around 3 train stations ahead the house prices are around 280 k which means selling this one assuming it does not make any profit or loss(as currently the market value is same) we will have about 185 k so the new house would require around 95k mortage which will be very very less in comparison to our current debt plus monthly installments of around 400 will what be going so major savings from salary but the issue is if you look at the situation,although we will saving monthly plus peace of mind with less amount of total mortgage on one hand on the other hand we have actually devaluated our asset and property networth by going from house worth 365k to 280k,so I want advise as to which option to go ahead with???

How much is the extra commute going to cost?

As you will have more equity in the new house you will not lose in that respect unless the house prices don't raise by the same percentage.

Do what enhances your family's life. A house is a home not just an investment.

Thanks so much for the reply,the commute is roughly going to cost around 350 extra a year.

Also look ahead to schools in the new area, what are they like? What's the community like, would you feel safe walking after dark? Playgroups and social events? etc etc

I also think you need to check with your mortgage company about whether or not there will be any extra charges, some do, especially if it is a decrease rather than an increase in loan value. Remember to account for moving costs and stamp duty etc too. No one can make this decision except the two of you, just do what feels right.

xan You overpay your mortgage at all to reduce payments in future years?

Moving will cost you around £10k you don’t seem to have factored that into your suns, so assuming you have that money for estate agents fees and solicitor could you pay that off your mortgage to reduce payments?

Depending on just what a ''sort of'' major chunk of you husbands salary actually constitutes it does sound like you've overstretched yourselves.