Between my husband and I we have about £250k in savings. We have about £300k left on our mortgage. Our mortgage is £1800 per month.
We had always thought we would use the savings to buy another home. We’re currently in a small 2 bed flat and would really like a house with a garden. In an ideal world we would keep our flat in central London in case one day we want to move back.
If you were me, would you pay off the bulk of the mortgage now, knowing that we would have to sell up if/when we decide to upsize? Or would you hold onto the dream of keeping the London flat and buying elsewhere? Is there even any point having a second home these days given the costs involved with being a landlord? If we rented it out we would be able to get about £2000pcm but we would have agency fees and tax to consider.
To add to the conundrum, our flat is worth a little less than we originally paid for it 10 years ago and there’s no guarantee it will appreciate in the short run.
I would appreciate anyone making any sense of our situation!