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Original poster

Stay or move?! Mortgage free?!

28 replies

Mellomarsh · 13/07/2023 08:32

Just looking for some objective opinions on our situation. Can't decide what to do and don't really want to discuss in such detail in real life!

Current situation, DH, 2 DCs (4/2) and I live in a lovely 3 (double) bedroomed detached. Has all we need in the house (ensuite/utility/open plan living/play room) though every single room is quite small. Lovely location, good transport links ect. However, we can't shake the niggle that we need to move to somewhere bigger...with a view to future proof the house, offer some additional living space and most definitely another bedroom. We often work from home and are sat at the kitchen table. Kids will eventually get bigger - as will their friends and I want them to have the option to be here with friends/live here as long as needed ect and four adults in our current place doesn't really offer a lot of privacy! Obviously this is a long way off but inevitably house prices will only rise in the long term so working out when and if to bite the bullet...

Additional info making my decision that bit harder - we have a smallish mortgage left of 115k, BUT we are about to recieve a gift of 100k (extremely lucky and privileged I know). Which would mean absolutely miniscule mortgage which we could pay off very quickly.

Would we be absolutely mad to move now?! Abandon the option of being completely mortgage free with 2 young children?! Or is now a good opportunity to negotiate a good price on somewhere new? (Likely would need a mortgage of anywhere between 130-160 for new property). We have zero other debt, no cards/car loans. Only other commitment is a small childcare bill which will be done next year. We both have secure jobs, I work part time (so potential to up to full time if required though I'd prefer not to!) Rough household income around £70-80k.

I guess what I'm asking is what would you do if you were us?!

Thanks in advance!

OP posts:
DustyLee123 · 13/07/2023 08:34

3 bedrooms with 2 DC isn’t big enough IMO, especially in your financial position. I’d move.

mirages08 · 13/07/2023 08:46

Moving now?
Yes. You'd be mad
Stash your wages in a high interest account for 2/3 years and then move
You'll have more choice and it'll cost less
Never ever, ever buy at the top of a falling market!!!

FatCatBum · 13/07/2023 08:52

I'd pay off my current mortgage and save save save, so that you can move when you need to in a few years time and minimise the mortgage you need

Moveoverdarlin · 13/07/2023 08:54

I would move. However perhaps now isn’t the best time.

LeroyJenkinssss · 13/07/2023 08:57

I’m sorry but why on Earth is three bedrooms with two kids not big enough?? In your shoes I’d look to see if a garden room is a possibility. You live in a nice area in a nice house. Why don’t you now enjoy other aspects of the cash availability? Holidays, experiences, less stress. You’re kids are small, why don’t you save what you can and see when their older as to their needs.

DogInATent · 13/07/2023 08:57

Lovely location, good transport links ect.
Is there potential to develop your current property to better suit your needs? - extension, garden pod for an office, etc.

Lastwhisper · 13/07/2023 09:04

Depends where you are with your mortgage rate. I’d keep the 100k (how nice) if savings rates are above the mortgage rate.
Take your time, house prices aren’t going anywhere for a while and you will have the opportunity to choose somewhere that ticks all your boxes.

3BSHKATS · 13/07/2023 09:06

At the moment, I think everybody is waiting and seeing so there isn’t very much on the market. Maybe just keep your eyes open and if something lovely pops up you’re in a good position to go for it.

Cornishclio · 13/07/2023 09:11

Personally I wouldn't move especially with high mortgage rates. You are thinking way too far ahead with such young children. They may go off to Uni and not come back home so fast forwarding 10-15 years and disadvantaging yourself financially would not be my choice. Pay it off your mortgage then strive to pay off the other £15k asap.

KievLoverTwo · 13/07/2023 09:23

Right now, nope. Understand the future proofing but now is the wrong time. Almost noone is upsizing but the upsize houses are barely bring reduced in price anyway. Those folk seem ultra stubborn about the value of their homes and it's gonna take more interest rate shocks/more time for them to adjust their expectations.

Bung the money in a high interest savings account. It will probably earn you more than paying off your mortgage in the next few years anyway.

Garden room/summer house both sensible. Basement conversion, loft conversion? Even a small extension with a garden room would probably be cheaper than moving. In 18-24-36 months time I am sure the land will lie very different for those upsize homes when folk are forced to adjust to a new, less affordable home economy for all.

And give them a few precious memories with some of it in the meantime. A really special, fun holiday, etc.

Original poster
Mellomarsh · 13/07/2023 09:24

Thanks for all your replies so far. @DogInATent no room to extend, other than a partial garage conversion (would still need some garage storage). And the garden is fine (enough to house a trampoline with some more grass to play on) but probably not big enough to house a garden room. So I feel like we use every inch of the house.

Current mortgage is up in March next year (2%)...so would probably keep hold of the 100k somewhere until at least then as I know we'll earn more interest in savings now but who knows when it gets to March next year what it will all look like!

@LeroyJenkinssss yes, the idea of being able to have multiple holidays - not have to say no to the kids (within reason) would be so lovely.

@Lastwhisper @FatCatBum @mirages08 you all make very good points. We aren't desperate to move right this second...maybe the happy medium is saving now, with a plan to at least have the option to move later and be in a better position to know what we need.

Again, I know what a fortunate situation we are in when many thousands will be stressed about what happens next.

OP posts:
Original poster
Mellomarsh · 13/07/2023 09:27

@Cornishclio and @KievLoverTwo - your comments really helping put this all in perspective. Thank you.

I think you're right re the bigger houses, still asking top whack but they are just sitting there (in most instances where we are). I genuinely haven't seen a house I'd want to move to in the last 6 months so perhaps that also says something....

OP posts:
Chocbuttonsandredwine · 13/07/2023 09:29

Definitely agree with not moving at the moment. The market is terrible.

stash the money, have a nice holiday, see what interest rates look like in March. In 2/3 years time the world will look very different in relation to houses and prices, the you will hopefully be in a good position should you choose to move to buy something with a good chunk of money plus even more equity.

Allthegoodnamesarechosen · 13/07/2023 09:34

If you are a house Fancier, rather than a listings Avoider, just keep looking. If you find a house which you really like and can afford, that’s your answer. Of course, you have to keep your feet on the ground, do your sums etc - but you are talking about a home, not an investment plan.
I hope you find somewhere which suits you.

NewLeafAgain · 13/07/2023 09:39

My neighbors have 5 teens (6 bed house) and built a lovely large garden room as a hangout for the teens. Was about £15k installed Inc electrics.

Mortgage free is a huge relief to me. I'm a single parent and know that if anything happens to income, we have our home guaranteed, or a source of income if absolutely necessary.

orangegato · 13/07/2023 09:41

Move now!!! You can take advantage of the buyers market and sellers accepting low balls
AND won’t be impacted much by mortgage rates as you’ll have a ridiculously high LTV.
Go for it, I would in a heartbeat.

Oliotya · 13/07/2023 09:42

DustyLee123 · 13/07/2023 08:34

3 bedrooms with 2 DC isn’t big enough IMO, especially in your financial position. I’d move.

On what planet is a 3 bed not big enough?

Oliotya · 13/07/2023 09:47

I'd stay put and get a garden room. You can get some really compact ones if space is an issue.
No way I'd be taking on a mortgage unnecessarily at the moment. I'd rather have the disposable income and take advantage of interest rates on savings. You can always buy a bigger place in the future.

Fooksticks · 13/07/2023 13:21

This was us. 3 bed, ensuite, garage, detached house but needed another living room and another bedroom as I WFH 100% and dh a few days a week.

We were mortgage free for 5 years and it was amazing. But, I always knew we'd have to move as the house was just too small so that was always in the back of my mind.We have just bought a much bigger house that will see us through until we decide to downsize when DC have left home.

We know we've bought at the top of the market, but we also sold at the top, however our new mortgage is 18% of our net take home and will be done in 6 years.

Your DC are young, so I wouldn't rush just yet. But my point was sometimes it doesn't seem the right time to do something, but for us, it absolutely is the right time. Only you know if this is the time for you.

Fooksticks · 13/07/2023 13:34

Oliotya · 13/07/2023 09:47

I'd stay put and get a garden room. You can get some really compact ones if space is an issue.
No way I'd be taking on a mortgage unnecessarily at the moment. I'd rather have the disposable income and take advantage of interest rates on savings. You can always buy a bigger place in the future.

Garden room is a good idea! We also had one and it gave us more time in our smaller house to save.

Twiglets1 · 13/07/2023 13:58

I wouldn't move now with mortgage rates being so high. I would put the inheritance into a high interest account and also have a nice holiday once I've got the money.

I would move to a 4 bed once rates go down a bit - maybe 2024 or 2025.

InTheCludgie · 13/07/2023 14:07

Hi OP we are in a similar situation except we are in a two bed with 2 older DC of opposite sexes still sharing a bedroom. We were supposed to move last month but it all fell through the week before the move and the chain collapsed.

We have put the deposit money (two lots of inheritance) into premium bonds as there are no suitable houses out there to buy, we're not paying off the mortgage as we will lose our fixed rate which isn't up until the end of 2026. It's a real pain when financially you can move, but the market dictates otherwise! Like pps said, I would stick the money somewhere it will earn you interest, especially if your mortgage rate is low atm, while you keep looking.

/waves at @LeroyJenkinssss , another WOW fan here!

gonidotmoods1984 · 07/08/2023 11:47

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mumda · 07/08/2023 12:10

Mortgage free works every time.

Future proof = when there are 2 of you only, will it be big enough. Unless you're planning on never letting your children leave home.

Whadda · 07/08/2023 12:59

If having a house that will suit your children into adulthood is driving this, I’d stay put, clear the mortgage, and then use the money freed up by mortgage payments to start decent savings for your children with the aim of gifting them deposits when they’re older.

I get that you want to future-proof, but look at long-term future rather than just the initial young adult stage. Having an adult child at home until they’re 25 is one thing, but most will went a home and family of their own so would benefit more from a gifted deposit than a bigger room at mum and dad’s.