Would you take out a large mortgage in the current climate or pay off your current mortgage in a couple of years?

[Limbodancer]

Namechanger.

We currently live in a house that fits our needs, enough rooms etc etc. In fact you could probably call it a forever house if it wasn't on a new build estate. That is my problem with it.

In the summer, people will call for ds all day long, the parents seem to "throw" them out and they end up in my garden, house, using the toilet etc etc for all the holidays. I got truly hacked off with this last year and the year before and found myself telling the dc to go home to their own houses, whilst feeling like an absolute heel for doing so. I also feel that as the estate gets older, people can't be bothered doing maintenance or pulling up weeds etc and already it is starting to look a bit crappy.

There is the possiblity of exchanging houses with another couple who want to buy a house on our estate and who currently own a house that they are struggling with financially. This house would suit our needs as it is near to the dc's schools and is in a group of only 3.

But the difference in price is substanial we would need to up our mortgage considerably, whereas in a couple of years time, financially we would be in a position to pay the current mortgage off.

Dh is in a job which is fairly secure at the moment and possible could lead to more promotion but they have had redundancies in the past and its not unlikely that there will be more in the future. Dh is scared to go for the bigger house because of this.

Any opinions on what we/you would do???

Tia

[lalalonglegs]

If living there was making me miserable rather than just irritating me a bit, I'd move.

[Limbodancer]

I fell out with the neighbour directly opposite in the summer over party noise, so yes it does make me miserable too.

I guess my problem really is trying to persuade dh.

[artyjools]

We are in a similar position - thinking of taking on a bigger mortgage to buy a house in a different area. Subject to selling our house and finding one we want to buy (not feeling very hopeful at the moment tbh), we would only do so if we can get a good 5 year fixed rate. If we can, we think we shall be okay, but there are tough times ahead, I suspect. Interst rates will have to go up at some stage. I guess it depends on how big a mortgage you are looking at. I couldn't bear to be miserable where I lived though.

[fedupwithdeployment]

Our old mortgage was pretty insignificant, but we wanted to move to London to a biggish house....and so the new mortgage is eye watering. I don't like to think about it too much. It is well within our means at the moment, but if interest rates go up a lot, there will be pain. We may need to rent a room, we may need (worst case) to rent out the house and live elsewhere (possible due to DH's job but not at all what I want).

For various reasons we had to rent it out for the first year and so we are currently overpaying, but it is a bit like pissing in the wind.

You have to look at your own situation and decide what is best for you.

[pinkcushion]

We have just taken out a large mortgage...it extends into dh's retirement. This works for us because the mortgage repayments are small relative to our income and we will remortgage in 3 years to reduce the term and increase our repayments - for various reasons we need to be cash rich atm. Secondly even if we didn't reduce the term dh's pension will comfortablely cover the mortgage repayments with plenty spare for a good standard of living - not the best choice for everyone - but a properly thought through decision for us.

[ivykaty44]

Do you have a downstairs loo and a side entrance or garage entrance to the house? Just wanting a rough layout so can advise accordingly

what sort of price differnece £50k or £100k

[Limbodancer]

In our current house we have a downstairs loo, double garage (also detached) with driveway large enough for 4 cars with gates. Back & front entrance and large garden. Property is on 3 floors with 5 beds and utility.

Potential property is on 3 levels with 6 bedrooms probably about the same age as my own but the standard of finish is much much higher as it was built by a local builder rather than a national. Higher spec kitchen & bathrooms etc etc. Garden is bigger with scope to add conservatory, has a double garage built into it iykwim. Its closer to amenities/schools and there are only 3 houses in the street.

[Limbodancer]

Price difference is about £150k but would need mortgage of about £250k.

[megonthemoon]

I'd say it's not so much the absolute amount of mortgage (always a scary number) but the percentage of your salary that would be going on monthly repayments. So your mortgage being 50% of your take home pay is very different to it being 30% in terms of the wiggle room you have if employment status or salary or interest rates change.

If you are miserable then yes, I would definitely consider it. You may pay the mortgage off sooner staying there but you'd still then be living in a house you didn't like even if for free so it would be a hollow financial victory IMO!

[ivykaty44]

gulp

See I would be tempted to stay as the life cycle of neighbours is 7 years and the dc will grow quick enough to not be coming around in 2-3 years so much.

I would reorganise my garage so that there where some garden chairs and a table tennis table or snooker table in - so a games room with strict instructions not to come in the house - only to use downstairs loo is really needed.

I wouldn't at this stage want to go up by £150k as this may still have time to go down and will go down by a larger % than the house your in now - so basics more money to lose. In fact trying to get a mortgage for another 200k can still be a great problem

I wouldn't be too happy with only three houses - could in its self cause problems with such a small number and i would be wanting to know what the other two family/couples/singles where like in that close.

[Limbodancer]

Thank you all. Your last post Ivykaty is exactly along the lines of dh's thinking. Current house is more than plenty big for 4 of us and if we didn't go for the pricey property, we would be going back the way as a lot of the property that does come up for sale here, would either need to be extended or needs £££££££££ spending on it. Whereas we do have what we need albeit I am not exactly keen on the situation of it. But then again we are in a village and close to woods. .