What would you do?

[Labmum321]

Currently living in a 3 bed semi, £580 mortgage, £82k left on the mortgage, over pay £200 a month

2 adults 2 girls aged 3 and a 2 month old

Would you stay in the 3 bed semi and overpay more on mortgage and buy in 5 years time when you will really need the extra breathing space, or would you sell and buy bigger now.

We bought in 2017 for £135k but houses are so expensive now! We’d get around £200k for ours and would be looking at 4 beds that are around £320k, it just seems a lottttt!

would you wait it out, pay more on the mortgage to have a bigger deposit for the next house but then risk house prices shooting up again or bite the bullet and do it now before house prices go up even further in 5 years time

If I were in your position, I would consider stopping over-paying and look into purchasing a larger home now. Given that you likely have around £65,000 in equity from your current house, you could use that as a deposit for a £320,000 property. This should comfortably cover a 75% Loan to Value residential mortgage.
Can you afford the monthly repayments on the new mortgage. If that’s a concern, would you consider an interest-only mortgage for the first five years? This option could provide some financial relief while you settle into the new place.