Mortgage or lifestyle

[Pomvit]

We live in a lovely house that we have just finished remodelling. Husband has seen a house that we have fallen in love with.

our current mortgage will be paid off in 9 years. To buy this house we would have to extend it to 14 years (max we could get due to husbands age)

it would cost us an extra 1600 per month on top of our existing mortgage. We can afford these payments as we have exiting loans that are about to finish that cover this extra payment so current lifestyle wouldn’t change

but my question is - if you had that amount of money available would you put it in a mortgage or would you use it for holidays etc

part if me feels it’s a better way to invest the money but the other just thinks we could do so much with the kids if we stayed put.

We are in a similar position, will pay off mortgage in 3 years all being well allowing us to create an early retirement fund over the following ten years. We would rather move to a different area which to get the house we want will cost more. We are choosing to stay and prioritise savings, holidays and experiences with the kids whilst they are still living with us and want to come.

Unless you need to move for extra space, I’d stay out and enjoy the time as a family, you won’t get this time again

Personally I wouldn't pay a mortgage for £1600. Nevermind an extra £1600, seems daft if you have spent time and money getting your current house how you want it. Use that money for experiences and invest in your future.

That's on today's rates? Could you afford on one salary, with higher rates etc.

I would stress test that decision to the max.

How are your pensions?

This OP.
There will always be nice houses.
Your kids won't be little forever.
Also they get expensive as they get older... with 1.6K a month think of the opportunities you could give them!

You don't state any practical reasons for moving only that you've 'fallen in love' with this other house. Unless you go into more detail it doesn't make sense to pay so much extra.

I wouldn't pay a mortgage of £1600, nevermind an extra £1600! Choose the holidays, life is way too short.

I would stay put and choose lifestyle.

We live in a 3 bed semi and have agreed to stay put and focus on paying it down rather than upgrading to a bigger house. We want to enjoy life and we’re planning a family so I want them to have lots of memories of lovely holidays. I also want to be able to save for their education (university, etc) and house deposits as I didn’t have that privilege.

Why not stay put and enjoy the 'lovely house you've just finished remodeling'?

I can't say unless you give an age. If you're 75 I would say no.

Depends on many variables. How old are you? Do you have svings/ pensions? Etc, not straight forward without all the info.

Mortgage. Property becoming more valuable will fund many holidays in the future, it’s only an extra 5 years.

Just made a similar decision. We're staying put and going to spend the spare money on holidays and experiences and pensions. We bought this house always planning to move to 'the one', but the reality is if we moved to a shiny house and one of us lost our jobs we risk losing it. The world feels strange at the moment so I'd rather just pay off this small mortgage and feel calm. We're mid 50s.

Thanks for the feedback - honestly there is no real reason to move other than it’s just a nicer house two streets away from where we live. Kids would have better bedrooms and garden is a lot nicer etc

I'm leaning towards - experiences and stuff we could do, plus more of a feeling of security - husband thinks house is a better way to invest the money for the kids future and thinks worst case one of us loses their job he could pull money out of a pension as an ultimate back up

Our pensions are in good shape and we have no other debt.

I'm 44 husband is 55 are 7 and 10. So this also plays into his thinking that if we ever wanted to move we’d need to do it now.

Your eldest will be going to Uni in 8 years. Costs are astronomical : your next following on only 3 years later. The time will flash by.

You need to put that money aside for them. They may not only do a first degree but need money for post grad. qualifications. If you haven't planned these options may not be available for them.

Any surplus should go to help them with housing.
There is no law that house prices will continue to rise or that you will be able to sell just when you want to.

It’s relative- how big is your house now? Are we talking no holidays vs 3 holidays - I personally think get the biggest house you can and give yourself ample money when you downsize when older.

We prioritised holidays and pensions, and then used some of our pension tax free lump sum to clear the mortgage and to retire at a young age.

We did move house but I could have been taking voluntary severance now. Instead I'm going to have to skip and carry on working but I don't regret moving. We are so much happier than we were in the other house ( but we had awful neighbours and now we have lovely ones). I wouldn't be bothered about a nicer garden or bedrooms tbh!

In a similar position, but think we have come down on the decision to stay put. Our house is a reasonable size, but a townhouse, so small downstairs and garden.

We are currently saving in a high-interest account so that when our fixed-term is up (in 8 years), we will have enough (and then some) to pay off the rest. That's the plan anyway! We were so fortunate that we managed to fix for 10 years literally just before the interest rates skyrocketed.

Our DC will be mid-teens by then, so freeing up £1k/month will come in very handy.

£1600 could become your savings. There are millions of houses you could see and fall in love with. Imagine having the time and ability to fall in love with your own selves again.

Hmmm i am 50/50 on this.

Living in a beautiful spacious home is something i would value highly. And loveeee hosting

Butttt....
At 7 and 10 they are at the age you can really start doing AMAZING holidays.

1k pm is a lot....you've got uni on the horizon

Unless you are in a pokey 3 bed terraced or a house that doesnt meet your needs i think I'd stick....