Move and double mortgage or stay in 2 bed with 2 kids?

[emissionspectra]

Hi there,

Short version: is it worth staying squeezed in a small house with no parking in order to never worry financially and retire early, or should we submit to the rat race?

Long version:

NC to an old name for this as I’m about to spill my personal financial details and worried other posts are outing.

We currently live in a tiny 2 bed Victorian. We have a 12 year old child and another on the way. We are also meant to be in the process of buying a 3 bed detached but the chain keeps stalling, and now we’re getting cold feet.

Our take home (net) pay is £5600 per month. Current mortgage is only £560, new mortgage would be £1233 (+£100 insurance we would need)

Our current house is so cheap we aren’t worried about either of us losing our jobs, at all. I earn much less than my husband and could handle all our household expenses.

The new house will probably cost ~£900 more a month more (council tax, electric, mortgage etc) plus £22,000 up front on fees and stamp duty but it’s on an idyllic private, tree lined cul de sac, adjoining woods, backing onto allotments and still a short walk to the station to access the city.

Right now we can’t park outside our house, have a scummy landlord who owns adjoined rental next door (last neighbours were from hell but these ok) but other neighbours are lovely and it’s a really cute cottage and convenient location.

Any personal experiences or words of wisdom people can share? Feel terrified that whatever we choose will haunt us!

it’s on an idyllic private, tree lined cul de sac, adjoining woods, backing onto allotments and still a short walk to the station to access the city.

Right now we can’t park outside our house, have a scummy landlord who owns adjoined rental next door (last neighbours were from hell

Well, on your income I would move, I reckon.

You've got a 2-bed with a BIG age gap for your DC. Your 12-year-old isn't going to want to share with a baby ... and I would personally argue shouldn't have to.

So then you'd have to plan to have the baby in with you until they were 5 or so, when your 18-year-old DC1 went off to uni or whatever.

Teen years are hard enough without being cramped and on top of each other. New babies are hard enough without being cramped and on top of each other.

So your other option would be to extend ... is that feasible in your current house?

You have made the new house sound really lovely, and so I'd probably spend the money and move for the space.

Much also depends on whether your careers are secure, whether your skills are transferable etc.

So for instance is there a good reason why you need to worry particularly about one of you losing your jobs? Insecure industry etc., or lack of opportunities for employers in the area, or whatever. If you can easily get more jobs in the same area, and both of you are employed, then worrying about job loss is maybe not such a problem?

Thanks for the responses.

Current house would be v hard to extend. We could potentially move bathroom downstairs to end of kitchen and have a long thin single at the back of the house. Roof would be really tricky as no space for stairs (without losing a room which defies the point) so would need ladder type thing and also to ruin aesthetic of house by busting out the side of the eaves. The roof slopes sideways from the street rather than forward like the normal ones, IYSWIM. I think if we stay we will get a really good quality sofa bed and storage and give each kid a bedroom once the younger is 1-2.

Re: our jobs. My current job is quite niche but I have nearly every project management qualification that exists so could find a non IT PM role. I can commute to central London in under 30 mins from my door via overground but there are lots of companies here too.

DH works in IT - financial services. Very transferable skills and very sought after role, however he recently gave me a push to sort out my Irish passport as he’s been helping several big banks move their operations to Ireland and France lately due to economic uncertainty! In fact that’s one of the things that’s making us slightly wary, I’d quite like to move elsewhere in the EU at some point in the next 10 years - at least temporarily - DH’s job lends its well to moving about and I’m quite bored in our identikit south east commuter town! DH could also do a variety of job titles due to his skills and experience.

Should also add we are still reasonably young (I had DC as a teen) and only 29 so maybe why I’m feeling daunted at putting down proper roots!?

With your income you should move. You can still have a good lifestyle as your mortgage is not that big as a percentage of income.

I can't see why you can't move and still save and have a decent lifestyle.

Also at 29 you have so much time to overpay mortgage and plan for retirement.

In the current economic climate I wouldn’t move. You have until the baby is a year old and needs their own room before you need to make a move. Journalists are starting to write about a coming recession it may not be the best time to stretch

The new place sounds amazing! We are in a tiny house and it’s challenging st times. More space for a growing family is s luxury, especially in a beautiful location.

I'd move. It sounds like you can afford the new house quite comfortably and the current house doesn't sound suitable for your needs.

This is a false dilemma surely? There are not only two options

Probably not banjo but the immediate options are thus. I think we’ve ruled out extending but we could hold tight for a couple more years or buy something only 50-70k more than ours with extra room (but not the lovely posh street).

Thanks all for the perspectives. Food for thought is helpful as we are feeling a bit daunted and not “adulty” enough to know what to do!!

I think I'd do it.

If you had to move could you convert your mortgage to buy to let and still cover the repayments? In the event of your income going south, how much of the mortgage would a lodger pay (if your area is suitable)?

At only 29 I'd definitely make the move. You both still have so much time to move up the career ladder and increase your earnings that you could over pay and still be mortgage free very young.

I would move you need the space and an extra bedroom just out of necessity

At that income I'd definitely go ahead with the move to give you all space

Move. You are young and your new mortgage is fine on your income. You can always downsize in the future.

God move, you’re being ridiculously risk averse not to. You can easily afford the new mortgage, and sharing with a 12 year age gap would be complete pants, particularly for the elder of the two. Honestly, it’s a no-brainier.

It's time for you to move due to the following - your house is to small when you have another baby. You might manage for a while but it won't be easy as the baby will have a cot, pram/buggy and a lot of other things as well.
You can't expect a 12/13 year to share a room with a baby.

I would also consider that you can't park your car outside your door. You can't build an extension or do much to improve the layout of your house to suit your current requirements.

You also have a scummy landlord with a property next door so if the current nice tennents leave you could have horrible neighbors again.

You have a decent incomes and can afford a larger mortgage to get the extra space you need. The house you have seen sounds lovely but have you seen other houses around the same area? Perhaps you could look at in person cheaper house in the same area with 3 bedrooms.
Some houses just have a better layout or larger rooms inside that work better for a family.

I'd stay put for 5 years and hoard money like hell so you don't have to increase your mortgage. With your income you could easily stash 3k a month. Cut back massively and save so you aren't taking on unnecessary debt paying back pointless interest. You do need to move, just not now.

You’re 29! God, then ABSOLUTELY move. Was imagining you were 19 years older!

You can’t extend, you both have good jobs in IT, you’re about to have a teen and a newborn, and the new house is location, location, location...

In fact that’s one of the things that’s making us slightly wary, I’d quite like to move elsewhere in the EU at some point in the next 10 years - at least temporarily - DH’s job lends its well to moving about

So, which house would rent out most easily? The family 3-bed in a nice street or a 2-bed in a not so nice street? You’ll get takers for both. Spend 10 years overpaying when you can (bonuses, pay rises etc) and put yourselves in a good position for future moves.

I’d say with such a large age gap and bring young yourselves you perhaps can’t rule out another child yet either - and then what would you do for space? I also just fundamentally believe there is no such thing as a ‘comfortable duds bed’ - but that might be that I’ve just never encountered one!

19 years older! ... that would be very specific of me! Fat fingers, I meant 10 years older. Anyway, point is you’re young and at the right time of life for this move.

‘comfortable duds bed’ - sofa bed

I would move as I can’t see how it’d work for a 12 year old and baby to share.

It depends where you live too.

The advise to stay out and stash money away would work if you live somewhere there’s likely to be a housing price crash.

I would move and aggressively pay off the mortgage.

Bloody hell id definitely move on your income and at your age. We have similar income and mortgage to you and still manage to lead a comfortable lifestyle and put money into savings and investments (three DC).
Your older child will be miserable sharing a room with a baby/toddler.