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Property/DIY

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Original poster

Financial freedom or to invest?

10 replies

Mumtum88 · 04/12/2023 19:51

Honest opinions I don’t know if I’m being stupid and just getting sucked in by the idea of a big house or if it’s just normal living.

Me and my husband currently own our house, house is worth about 190k and we owe about 90k still left on the mortgage. Were considering moving, main reasons is the house isn’t in the best area, house is ex council even though we’ve done lots of work to it was never our dream home, neighbours are a pain, constantly copying everything we do and are pretty noisy, size wise though it’s great but again just not the perfect layout.

we’ve seen our dream home, to buy we would need to more than double the mortgage and increase the term to buy. Affordability wise it’s fine, DH has had a big pay rise in the last few years so I’m not to concerned that way but what’s making me question it is that if we paid practically what we would be out on the new house to our current (maybe slightly more) we’d be paid off on a 7 year term meaning we’d be mortgage free by 41 where as we’d be taking the new mortgage probably around a 25 year term.

The obvious benefit to paying the mortgage off sooner would be the financial freedom but on the other hand property is an investment… I’m really torn.

any advice on either side would be great?

OP posts:

LindaDawn · 04/12/2023 20:30

Not sure why you would need to be mortgage free at 41! Go for it if you are sure you can afford it! Property will always be a good investment long term.

Twiglets1 · 05/12/2023 04:29

I think 41 is really young to be mortgage free. I will be mortgage free at 58, husband will be 62 and honestly we consider ourselves to be lucky to be mortgage free with a great house at these ages.

We saw our 30s as a time to climb the property ladder while our salaries were rising, especially my husbands as I was working part time with the bulk of childcare responsibilities.

Having said that, it’s personal choice so there isn’t really a right or wrong answer. Friends of mine made different choices and now have better pensions than me & have enjoyed more disposable income over the years for more expensive holidays etc so it’s down to personal priorities.

Derb · 05/12/2023 07:11

In your position, we went for the bigger house. Property will always be an investment and we plan to downsize when the kids leave home.

We have used our 30s the climb the property ladder and now have enough equity that we could be mortgage free on a smaller (£260k) property if we wished but we enjoy living in our current home and can afford the mortgage.

Wendyspotatopeeler · 05/12/2023 07:20

We traded up in our early 40s which has been the best for us. Better location and lots of space. Our lives are enhanced by it. We'd have been mortgage free had we stayed in our last house but no regrets. We didn't overextend our finances to move and we are working towards paying off this mortgage before we are 50.

Rjahdhdvd · 05/12/2023 07:23

So you’re mid thirties? Go for it, you’re too young to settle on a house that isn’t quite right and has niggles when you have other choices.

determinedtomakethiswork · 05/12/2023 07:27

but you would be mortgage free and a house you don't really want to live in!

Original poster

Mumtum88 · 05/12/2023 07:41

That’s us. We’ve got two kids so I work part time but my partner has just moved into a different field of work so he’s had a big wage increase. We’ve just got rid of the nursery costs so we’re reaping in that back as well. Just seems like the right time to do it!

OP posts:

Pantofolaio · 05/12/2023 08:18

So you’re only 34. I’m 54 and just finished paying my mortgage. We moved three times, before moving to the location, size, garden etc that suited us best, using the increased value to ‘level up’.

If you were to deduct the cost of nursery fees from the potential new mortgage , how much extra would you need to be paying out? How much extra is your husband earning? Can the additional cost of the new mortgage be covered by the nursery fees and the extra salary?

25 years is a long time so lots can change to give you the chance to reduce the term. You both have the potential to increase earnings etc. If the new mortgage increase could be funded by the nursery fees and a portion of DHs salary, then you might consider reducing the term upfront. Like take it out over 23 years etc.

25 years is also a long time to be in the wrong house, when you have the money and opportunity to move! Go for it!

squeekychicken · 05/12/2023 08:24

I was Mortgage free at 37 as we relocated from a v.expensive area in SE to up north. The house we bought was nicer though for half the price. Being mortgage free at this age is amazing. We have a fantastic lifestyle, can put money into Lisa, isa (for us and dc) and doubled pension contributions so hope to retire at 60 at the latest. However in your position if you don't like your house or the area then I'd move and increase mortgage.

Twiglets1 · 05/12/2023 08:35

Mumtum88 · 05/12/2023 07:41

If you can afford it, go for it 😀

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