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Downsizing now or later?

0 replies

Curlingstone · 03/07/2022 13:09

I'm mid 50s single parent with one DC ( currently yr 10). I've struggled at work for some time (NHS) and have reduced my hours to the minimum to pay the bills etc with a view to early retirement in the next year or two.
I won't stop working entirely, just not in current job. Not entirely sure what I'll do, but that's for another thread!
I'll take my pension at 57 ish but am still waiting for an estimate. It won't be sufficient to live on whilst DC at home ( no child maintenance/other money coming in).
My current mortgage is £100k .
I'd like to downsize to pay this off and would be left with approx £50k.
There will also be a lump sum from pension of similar amount (£50k).
I'm fine with downsizing and definitely think it's the right thing to do.
My question is whether to enjoy the GCSE & A level years mortgage free whilst also exploring my own working future or wait?
My house is in a hugely desirable area and will sell in a flash.
I can pay the mortgage while working & my house will continue to increase in value. I will literally move 2-3 streets away to smaller but still v desirable house ( Edwardian semi to terrace). So where I move to will increase in value at a similar trajectory.
I just love the idea of mortgage free and smaller house with smaller bills. DC totally onboard.
However with lousy interest rates is it mad to free up cash which then becomes devalued?? Should I stay until I can no longer afford mortgage?
Any thoughts much appreciated, thanks

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