Would you move now if you were us?

[Letshoptoit]

Me, DH, DS3 and one on the way, about to go on maternity leave.

Live in extended 3 bed terrace, in nice area, lots of parks, cafes, can walk into city centre. Open plan kitchen diner and separate living room, downstairs loo, upstairs bathroom, DS3’s room is a box room. Primary schools OK, secondary school previously not well thought of but likely on the up. Small garden, on street parking which is getting worse.

Have 176k left on mortgage. Early/mid 30s. DH and I both work part time, total monthly take home about £4800 (£3200 me, £1600
DH). Mortgage currently £1000pcm (2.8%, 17 years). DS needs to start school in September 2023.

We could stay here, overpay on the mortgage a bit more, plan to live here a bit longer.

Cost of living is only rising. I am looking to change my job to no commute, same salary which would save petrol money and my student loan will be paid off in a couple more years which will free up a bit more.

Bank would lend us the money to get a bigger house near schools, 4th bedroom, bigger garden, utility, driveway. Would put monthly payments up to £1500pcm at today’s deals if we go back to
a 25 year term.

Do it now? Or wait and see how things pan out. Potentially consider moving DS early in primary school.

If there are no pressing reasons to move now, I think the start of a recession, on maternity leave, is a bad time to do so.

Stay put for another year or so given crazy housing market & imminent Mat leave. Mortgage rates are likely to rise more and stay high for a few years yet, but maybe they might fall a little in 3-4yrs time?

We relocated so moved DS to a new school for year 2 and he’s blossomed in his new school. I moved three times during my primary years, kids are very resilient in KS1/early KS2.

I would move eventually though, as it sounds like you can afford to and you’re young enough to go back to a longer term, worth it for a bit more space and off street parking, esp’ as your kids grow.

Id move, you’re still young and if you’re already a little squeezed it will get worse when the baby arrives. £1500pm isn’t much with your salaries

If you are confident about your jobs (big recession looming) then I would go for it but keep some slack as this cost of living crisis isn't over by a long way yet

I'd stay put. You might find you are better positioned to move in 18 months but I don't think you'd be worse.

I would not fancy the financial risk of moving right now. Our take home is similar to yours, as is our mortgage term and outstanding mortgage. I inherited some money recently and we could upsize to somewhere worth more like £600k instead of £400k. Instead, we plan to overpay the mortgage and hopefully be mortgage free within 5-6 years. Like you, we have enough bedrooms, and I just don't think the risk is worth it.

Given what you have said about the schools alone, I would definitely be wanting to move.

”ok” and “on the up” - not good enough in my opinion.

I would wait about 3 years. Ok is bearable at primary school.

I think I'd stay put, particularly as you are the main earner.

Are there any minor changes that would make life easier in the short term?

Flooring the loft for example and having some decent storage up there?
Having a nice built in cupboard put in the landing to serve as a wardrobe for the smallest room.
Rehanging the box room door either to open outwards or against a wall.
Putting great toy storage into the non grown up living room.

Your downstairs sounds a good size so think about your space as a whole and maximising it for two children.

And BTW if you are saving all the big lump of plastic toys for number two they will barely look at them. The things your first loved for a year have appeal for about a month because as soon as they see the next stage up they want the train set and not the flashy drum!

We did a similar move 10yrs ago at same ages & kids took a mortgage to end when I was 65. Both of us had salary rises in that time and the house has nearly doubled in value plus we’ve consistently overpaid to reduce term. So it was worth the gamble … however our previous property we lost £15k over a 5yr period as the market stalled. With the impending rise in cost of living & interest rates be prepared to make it a long term move 10yrs+ you can fix mortgage for 5yrs for certainty but a bigger house costs more to run as well. I would add 30% to current bills to see if you have a buffer to absorb any rises. I’d say it’s worth a calculated gamble now if only to increase capital in property if you buy savy

If one if you lost your job could you switch the mortgage short term to interest only & still live for 1-2yrs is another consideration?

I'd move now and get settled somewhere new before starting primary school.

I wouldn’t. We have a very similar (slightly more) income to you and I couldn’t imagine spending £1500 a month on a mortgage and I don’t have childcare costs or a student loan to pay. ( or any sort of loan). The cost of living is going to get worse, food, etc going up. Bigger house will be more energy costs. People lose jobs in recessions. House prices are likely to fall.

I am aware I’m a glass half empty person but always reckon better safe than sorry. We stayed in a 3 bed semi even though we could/can afford a 4 bed detached. And that was without the worry of the current economy. Never regretted it. It’s nice to be comfortable financially rather than stretching I reckon.