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Original poster

We have a hefty amount of equity in our house . . .

76 replies

SaveFerris · 09/10/2007 12:31

. . . .so we have two options.

Do we stay put, or do we move to a cheaper but still a lovely house and be mortgage-free?

What would you do? Would you rather be mortgage-free?

(bearing in mind the house we are in now is absolutely gorgeous but I am not totally in love with it so there would be no heart-wrenching goodbyes or anything)

OP posts:
Thelittlesoldiersmummy · 09/10/2007 12:34

Oh the chance to be mortgage free I would jump at it!

bummer · 09/10/2007 12:35

ditto soldiersmum

Wordsmith · 09/10/2007 12:35

How much longer does your mortgage have to run? If it's less than 5 yrs I would stay where you are. Is it affordable?

LucyJones · 09/10/2007 12:36

be mortgage free

Carmenere · 09/10/2007 12:37

Mortgage free living is the ultimate goal for most people, I would go for it. BUT why is you current house worth so much more than the one you are thinking of moving to? Is it in a nicer area, better amenities, better transport links, more outdoor space? will you miss these things?

CountessDracula · 09/10/2007 12:38

depends on your circumstances
if you stay where you are and pay off the mortgage clearly you have a more valuable asset at the end, if you can afford it then stay where uyou are, if not then move!

hanaflower · 09/10/2007 12:40

This reply has been deleted

Message withdrawn at poster's request.

LadyMuck · 09/10/2007 12:43

Depends on what you are likely to do with the spare cash. There is some merit is suggesting that at least part of your mortgage payment is going towards a long-term investment in property (though it does depend on property and location). If you are choosing not to invest so much in property then I wouldn't view that you just have spare cash, I would also review pension plans etc as well.

We are mortgage-free, and whilst some of our peers are now moving to their next home ("dahling it is so hard to find anything under £1.5m that is worth looking at"), we'll stay put. The money that we would have spent on the mortgage is split between retirement savings and school fees.

Original poster
SaveFerris · 09/10/2007 12:44

Its a eally tough one. We bought our current house from new 2 years ago and it was sold undervalued I think and at the value we have been told its worth we have made £210k in nearly 2 years on it. We have 23 years left on the mortgage, which is pretty hefty, but less than 50% of what we bought the house for.

I have seen a new house which I just love - its gorgeous. Individually designed, brand new, £400k. We could live there and be mortgage free.

The house we live in now I think is too bug - 5 bathrooms which I hate cleaning, and a whopping garden which we would need to spend around £25k to have as we want it.

New house is less than a 5 minute drive from present house.

Personally I would rather be mortgage free and spend 4 weeks of the kids summer holidays showing them a bit of the world (and me).

OP posts:
bran · 09/10/2007 12:44

Mortgage free is nice, but don't forget that it costs a small fortune to move in estate agent's fees, searches/solicitor's fees/survey fees/stamp duty/removal costs/decorating and upgrading of new property. You would probably need to move quite a few rungs down the property ladder to still be mortgage free afterwards. (Actually, you've probably already added all this up so sorry if I'm stating the obvious.)

I probably wouldn't bother unless my family had left home so a smaller house would do, or if I had to move location anyway. But then I'm quite influenced by a hatred of moving house and only do it when I need to (approx every 5 years atm).

TwigorTreat · 09/10/2007 12:45

would you be likely to find a house you are in love with mortgage free

nothing to stop you having a look

I know the feeling though .. we are equity rich .. but I love our house and don't want to move so it'll just have to remain a nominal sum

CarGirl · 09/10/2007 12:45

do it then, move and be mortage free!

edam · 09/10/2007 12:46

FIve bathrooms?

If it's five bedrooms, I am merely jealous.

Original poster
SaveFerris · 09/10/2007 12:48

Do you think I should be putting money into property?

I want to be able to take my children island-hopping around Thailand, and to Australia - places I have never been. We also want to possibly buy a holiday home in West Wales, in a couple of years time.

Its hard to know what to do for the best, and I don't want to make a mistake.

OP posts:
Wordsmith · 09/10/2007 12:48

But what if the house you want to buy is over-priced?

Sounds like you don't like your present house much - so I would move if I were you. Would love to be mortgage free myself! (Roll on Jan 2nd 2014)

Original poster
SaveFerris · 09/10/2007 12:49

edam - 5 beds and 5 baths. Far too many bathrooms for my liking!"!

OP posts:
Original poster
SaveFerris · 09/10/2007 12:50

Wordsmith, I think the house we want to buy is overpriced but the estate agent thinks its negotiable. We would be looking to stay there for the duration anyway.

OP posts:
Carmenere · 09/10/2007 12:52

Actually I think you should do it because a house you love worth 400k is a valuable appreciable asset.

bran · 09/10/2007 12:53

If you actually prefer the cheaper house then I would go for it. It may not be the the long-term optimum moneywise, but if it would suit your family then that's worth sacrificing a bit of profit for. It would probably be a good idea to put some of the money you would have spent on mortgage repayments into savings or an investment, especially if you are intending to buy more property in the future.

CarGirl · 09/10/2007 12:54

It's sound like you're worried about not having a mortage - your being mad, you'd like a smaller house, you've seen a house you really like etc etc - errrr buy it & move, simple!

Original poster
SaveFerris · 09/10/2007 12:56

Do you think I am being selfish wanting more disposable income though?

The house I have found is far from small - its still a very good sized 4 bedroom house, 3 bathrooms. Its just that its about half the sze of the huse we have now!

OP posts:
TwigorTreat · 09/10/2007 12:56

house you like vs house you love

you should do it

the being mortgage free is a huge additional advantage but the crux is loving where you live

TwigorTreat · 09/10/2007 12:57

but you DON'T LIKE your current house

you think you'll LOVE the new house

for that alone .. and on that alone I would move

Original poster
SaveFerris · 09/10/2007 12:58

I know CarGirl, but I don't want to move and think I have made a mistake. Have DH, who presently isn't 100% into the idea (about 90%), say I told you so.

OP posts:
CarGirl · 09/10/2007 12:58

wouldn't nearly everyone like more disposable income????

Why are you feeling guilty for being in a fortunate financial position?