Should I just stay put or keep on striving?

[Beaniebeemer]

My mortgage deal is coming to an end soon and the rate I'm being offered now is going to plummet from 5.49% to 1.39% saving £273 a month. The plan was to move next year (second step). Our house is small 660 sq ft but we cope (2 kids 6 & 3 DP works away half the month) kids have a bedroom each one is tiny 6ft x 6'6ft. We have some debt that could do with being paid down and I don't know whether we should concentrate on that or carry on and move as planned.

I'd stay put and pay down your debt (which may count adversely against any new mortgage application anyway).

Your house is small for your needs my dear yet tbh we all buy too much junk and overfill our houses with it so if you don't overfill it then I am sure it is suitable. What I did when I had to decide whether to buy or sell was write the for and against out on a pad and it soon became clear what we had to do . I hope that helps . Good luck with what you decide.

The house is smaller that most 2 bed flats so I'd want to move. Having said that, debt shouldn't be taken lightly and you need to have a plan to sort it out. Do you know how much more a new house would cost? If you were to pay the same as you were with he high rate, would that be enough to cover the costs of a bigger house?

Depending on your age, you could also take the new mortgage out over as long as possible (even 30+ years). That would reduce your repayments to allow to tong rid of debt. Once you've got no debt, you could start overpaying on the mortgage.