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Smaller house/cheaper mortgage or bigger/more expensive house?

10 replies

sweetpickle23 · 02/11/2023 15:01

I am purchasing a house, and have found two that I like- with a fairly significant price difference between them.

The cheaper one would be downsizing, so no additional borrowing and I would simply port my existing mortgage. Monthly repayments would not increase and I know I can afford the standard of living I currently have, and am happy with the level of disposable income. I like the house, could see myself living in it, but the bedrooms are small. Garden is huge and beautiful though, and aside from some repainting/aesthetic changes there is no big work to be done.

Bigger property is gorgeous- much bigger rooms, no compromise at all on space inside, all done out at a high spec to my taste. The garden is much smaller, so unlikely to be a forever home for this reason. The increased mortgage would work out at about an extra £500 a month- which I could afford, but it would mean much less disposable income.

No children, now or in future.

I am so torn as to whether to push to the limit for the "dream" house (garden aside) or live within my means in the smaller place- that quite frankly I'd have probably been thrilled about if I'd never seen the other one.

Current mortgage is fixed until start of 2025, at a rate of about 4.8%. Rates are clearly unlikely to go down then, but would they go up much? I'm worried the bigger mortgage wouldn't leave much wiggle room if so.

Advise me wise mumsnetters!

OP posts:
Ibravedaflood · 02/11/2023 15:08

House 1.
Why would you want more space at more cost? Big garden would sell it to me. House 1 have a dressing room and a bedroom.

ChilliPixie · 02/11/2023 15:19

House 1 without a doubt, it will give you much more security. You said that House 2 wouldn't be a forever home due to the small garden.

PrimalLass · 02/11/2023 16:01

I'd go for the smaller one with the amazing garden and focus on getting mortgage free.

sweetpickle23 · 03/11/2023 17:24

Thanks all. I offered on the smaller one and got outbid to such a degree that it wouldn't have been any more affordable anyway! Going to try and put a bid in on the other one but am not hopeful if that's indicative of the market...

OP posts:
grosslyunfair · 03/11/2023 17:40

I'm single (with a dog) and have downsized from a beautiful big house with a small garden to a smaller but still nice house with a huge garden. Big cost difference ( more than 200k). I have much more money, work less and have been happily decorating to make it mine. I do miss the space a bit- but the trade off of less work, smaller bills and a bigger garden have made me very happy! I think we are conditioned to think bigger is better but th8nk about what makes you happy. I very much wanted detached so ignored bigger semis and terraces. If the big house is it then go for it, but there are lots of things you could do with the money!

DrySherry · 04/11/2023 07:55

Smaller house and cheaper living definitely. Inflation far from beaten and property values likley to continue to slide for a while yet.

Peekingovertheparapet · 04/11/2023 07:59

Remember, it’s not just the additional mortgage costs on a bigger house, but the running costs will be higher too.

But also, a big garden is a nice idea but an awful lot of work, so make sure you like gardening because it can quickly eat up all your spare time.

Sprig1 · 04/11/2023 08:16

Can you keep looking for an alternative cheaper one?

sweetpickle23 · 04/11/2023 08:40

@Sprig1 I’ve been looking for a while, honestly can’t believe I found two I like at once!

OP posts:
XVGN · 04/11/2023 10:07

Peekingovertheparapet · 04/11/2023 07:59

Remember, it’s not just the additional mortgage costs on a bigger house, but the running costs will be higher too.

But also, a big garden is a nice idea but an awful lot of work, so make sure you like gardening because it can quickly eat up all your spare time.

Yep. You need to factor in increased Council Tax, Insurance, Maintenance, Utilities, Security, etc

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