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Original poster

mortgage-free, or house of your dreams?

112 replies

Squiffy · 04/02/2008 17:36

So we are in the really really fortunate position of being able to downsize enough to be mortgage free and still live in a reasonable house, which seems like a really cool deal to me, so I enthusiatically clicked through some property details on the internet and found some nice stuff.

And then I saw it. The house I dreamed of living in when I was a snotty-nosed kid and hanging round outside where the bus stop was, nose pressed up against the railings.

And it is on the market and just at the upper limit of what I can afford to buy if we sold our current house. But i will end up with a slghtly bigger mortgage than I have now so will have to kiss goodbye the vision of having a choice about whether or not I haul my ass into work every day (although would probably still work anyway).

So what do I do? The house of my dreams, or the mortgage free idyll? I'm in my 40's so it's now or never in terms of being able to do it. Please let me have your honest opinions...

OP posts:
jura · 04/02/2008 17:38

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justabouttotakeadeepbreath · 04/02/2008 17:38

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Posey · 04/02/2008 17:40

House of your dreams without a doubt. You may never get that chance again, and if things really go pear shaped and you feel you've taken on too much, then downsize. If you don't do it, you will probably regret it.

justabouttotakeadeepbreath · 04/02/2008 17:41

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NorthernLurker · 04/02/2008 17:42

have a look inside and get a really good survey done - just in case your dream is a sinking damp nightmare!

Neverenough · 04/02/2008 17:43

Squiffy, we are lucky enough to be in the same position and are just about to complete on our dream house-go for it, or you will always regret it. IF it doesn't work out, you can downsize then !

noddyholder · 04/02/2008 17:45

mortgage free Am in the same situation atm and have seen a few where I would still need a mortgage and have walked away which for me is a miracle.Life not house

PrincessPeahead · 04/02/2008 17:50

house of your dreams
much better investment in the long run than having money in the bank
(just in case you need to justify it to yourselves)

hey, what is life for? Live your dream!

Niecie · 04/02/2008 17:52

House of your dreams.

If you are going to work anyway, you might as well have a nice house as a result.

The bigger the house now the bigger the pension fund when you downsize and the children have left home in your old age. Plus you get to spend every day in a place that makes you happy.

The other thing to think about is that it might be expensive now but your salary will go up over the years (hopefully) but your mortgage balance will be going down so you will have more disposable cash in a few years so your choices won't be limited forever.

And the other thing is that now you have seen it, can you be happy anywhere else? Will you always be wondering what if, if you don't do it.

Original poster
Squiffy · 04/02/2008 17:54

Bugger. Had hoped to get a clear consensus. Anyone else? I don't dare arrange a viewing at the mo because I think even walking up the drive would be enough for me to pass out in delirious excitement...

Will cat you a link, Jura, too embarassed to post details as it is v posh

OP posts:
MegBusset · 04/02/2008 17:54

I'd go mortgage-free, I would personally rather have financial freedom.

But buying your dream house is probably a better financial option as it will be a good long-term investment.

Lucky you to have such a choice to make!

Quattrocento · 04/02/2008 17:57

I think the answer does depend on how old you are, and also on how much more work you want to do.

If you would like to retire at 55 and travel the world, clearly a big new mortgage will be an embarrassing encumbrance.

If you don't mind the grindstone, go for it.

I am 40 and mortgage-free. It's not a bad place to be.

PeachesMcLean · 04/02/2008 17:59

Go and see the house. you may be heartily disappointed once you get inside.

However, this is a tricky one. I went to see some friends at weekend who are mortgage free. They both work part time and are really content with their lot. Spend lots of time with their kids, can manage the holidays between them, no childcare. On the other hand DH and I work our pants off, have just moved into a bigger house, planning overseas holidays and new kitchens, DS is collected every day by a CM...

So which family is happiest? I know left their house feeling very jealous and like I was some shallow materialist woman.

MegBusset · 04/02/2008 18:00

If you have a reasonable pension then you might be able to do what my dad did and get the best of both worlds. He moved to his dream cottage five years ago, with an offset mortgage -- has just retired (at 60) and got part of his pension as a lump sum that has paid the greater part of the mortgage off.

But then he has a big fat civil service pension, which makes it easier...

noddyholder · 04/02/2008 18:08

We are 42 and 47 so mortgage free is the way to go for us and we both have travelling desires.If you can afford the bigger mortgage and that is important to you then it will bug you if you don't1

Original poster
Squiffy · 04/02/2008 18:21

Oh god peaches, "shallow materialist woman" that's probably me all over . quattro, Noddy, you are all giving me food for thought. Yes it will bug me if I don't go for it, but will give me sleepless nights if I do. I have those sleepless nights at the moment... DH and I both work in the City and it seems like one or other of us is 'at risk' in terms of redundancy on an almost monthly basis. Whilst we are both working we're fine, but I come out in a cold sweat when I think of either of us spending more than say 3 months out of work...). I know I am very very fortunate to have this kind of problem, but doesn't make it any easier to decide what to do!

OP posts:
noddyholder · 04/02/2008 18:26

If you are the sort of person who loses sleep don't do it!Redundancy risks etc are all scary but nothing is more scary to me than life passing by while you slog to pay for something that essentially means nothing At least not compared to time with your family and peace of mind.Try and look at the big picture

justabouttotakeadeepbreath · 04/02/2008 18:36

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Message withdrawn at poster's request.

Quattrocento · 04/02/2008 18:39

I wonder if the "house of your dreams" are people without any financial insecurities (high net worthers or public servants)? Or maybe they are younger than me? Or maybe I worry too much?

I have a six month notice period - that's the extent of my financial security - so I worry.

Blandmum · 04/02/2008 18:46

We own our own house.

In part this is because we have been luck with prevous house sales.

In part it is because we made a decision when we moved last time to buy well within our means, and drastically cut the size of our morgage. Within 3 years od buying the house we paid off the morgage with savings.

The house isn't perfect. It isn't a dream house that makes people gasp with envy, but it is a nice house that suits us well.

I'm so glad that we have no debts....it takes all the pressure off you.

We don't owe a penny to anyone for anything, we are very fortunate

noddyholder · 04/02/2008 19:33

will keep this bumped to see what the evening brigade think as it is a very intersting one

FriedGreenTomatoes · 04/02/2008 20:01

We took the option to go mortgage free last year (didn't downsize, just moved out of London) and for us it was the right decision. Whilst DH is big into his property porn, and still swoons over mega houses, he really doesn't want the pressure of HAVING to work.
But if you have always dreamt of a house like the one you have seen, and both you and your DH enjoy working and won't feel emotionally pressured by the increase in mortgage then I'd say go for it. You have YEARS of your life left to become mortgage free (you are still a spring chicken really ).
Oh, and you need to show us lots of pics when you have bought it so we can swoon with jealousy .

Crunchie · 04/02/2008 20:10

dream house gets my vote tbh. HOWEVER you need to be careful in this market how much to pay.

If you are mortgage free will you invest a similar sum to he mortgage payment each month? Then you will build up a real nest egg that way. If not then dream house

I know I will NEVER be able to afford my Dream house so DH and I have agreed never to move To make our current house the best it can be

Iota · 04/02/2008 20:15

I vote for mortgage-free and lots of disposable income

Iota · 04/02/2008 20:18

But if my dream house appears, I reserve the right to change my mind