Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Downsize and debt-free?

14 replies

FridaFancy · 04/03/2025 20:15

Long term user name changed because there’s a lot of personal info.

Context: 5 of us at home, older DCs but not of an age where they’re making any financial contributions from their small incomes. 4 bedroom 3 bathroom detached house.

DH and I are contemplating a move which would see us become debt-free and therefore financially secure (unforeseen drastic circumstances notwithstanding), however it would mean a huge compromise. We have 7 years remaining on our mortgage. My job (full time) is potentially at risk; moving would save us significantly more than my take home salary each month. Obviously this means that we’d be financially secure even if I lost my job. However it also means we’d have a home worth approx 2/3 of our current property when our mortgage is paid off, so we’d have far less capital. Additionally, it would be a big adjustment to move to a small semi with enough bedrooms but limited living space and one bathroom. The living space is all open plan and we’re a busy household with a lot of laundry and coming and going. Part of me thinks we should jump at being debt-free and grab the chance with both hands. Another part feels like these years of our lives will be so much harder (or perhaps ‘less easy/comfortable’ is a better way to put it) and there’s more to life than money.

In the new house, if I lost my job we’d still be better off than we are now. Of course I’d look for something else, my DCs are too old to need a SAHM and I’m too young to not be working, but nothing would change in terms of how we manage. What we’d essentially be doing is enjoying the benefit of 1/3 of the capital we would have had if we’d stayed put. In our current home, we’re fine provided I continue to earn the same or similar. If I lose my job it becomes really tricky, a move would potentially be necessary. Meantime though, we have enough space, no adjoining neighbours, and a house we really love.

What would you do?

OP posts:
Newgirls · 04/03/2025 20:19

1 bathroom will be a real pain for that many people.

How old are your kids? How much longer are they with you?

Can you move further away so you can get a similar size home? Or wait until kids actually leave before downsizing.

AcquadiP · 04/03/2025 20:23

I'd go for the security of being mortgage free.

FridaFancy · 04/03/2025 20:26

Newgirls · 04/03/2025 20:19

1 bathroom will be a real pain for that many people.

How old are your kids? How much longer are they with you?

Can you move further away so you can get a similar size home? Or wait until kids actually leave before downsizing.

We can’t move further away; we’re already quite far away from where we’d ideally be and the new house is closer. DCs are late teens and early twenties. Waiting is an option but obviously a risk while my job is potentially going to disappear.

Part of me thinks that people cope with far worse than one bathroom when everyone has their own bedrooms and their home isn’t overcrowded, but another part of me doesn’t want to just cope.

OP posts:
FridaFancy · 04/03/2025 20:27

AcquadiP · 04/03/2025 20:23

I'd go for the security of being mortgage free.

I’d still have a small mortgage; I should have been clearer that the “debt free” is everything bar a small mortgage, and the savings are the equivalent of 130% of my monthly salary

OP posts:
AcquadiP · 04/03/2025 20:32

FridaFancy · 04/03/2025 20:27

I’d still have a small mortgage; I should have been clearer that the “debt free” is everything bar a small mortgage, and the savings are the equivalent of 130% of my monthly salary

In that case, I'd still do it just to have a smaller mortgage which I'd overpay until it was paid in full. I don't like having debt. None of us know what's around the corner: the loss of our job, a serious health issue etc

Newgirls · 05/03/2025 08:28

Can the early 20s start contributing something or think about moving out at least part time? I guess they are students of some kind but really they do need to start helping

julia08 · 05/03/2025 11:20

So many variables, including when your current mortgage deal ends. But unless you're already struggling financially, I think you're a little early. Moving now will be a huge upheaval and could really affect quality of life for the whole family with less personal space, possibly a less nice area or noise/neighbour issues in a semi.

I'd personally focus on building up an emergency fund to give yourself a buffer incase you're without a job for a while and downsize in a few years once the children start to leave home.

LittleLlama · 05/03/2025 11:51

Downsizing is a big decision, and there are costs with moving (stamp duty, Estate agents, etc.), however, it sounds as if the savings made by moving house are considerable (since they are more than your take home pay). I am quite risk adverse and would feel more comfortable knowing I had financial security, however, quality of life is also really important.

I would take steps now towards downsizing, like decluttering, speaking to your children, getting the house properly valued by an Estate Agent along with information about how long properties are taking to sell, etc. This will take a month or so and by then you might have more information about how likely your role will be made redundant and so can make a better decision.

heldinadream · 05/03/2025 13:10

Any scope to add a small extra bathroom to new house? Nothing fancy, just another toilet, basin and small shower?
I think the move sounds a wise one to be honest but there must be ways of making the house that little bit better without spending too much.

snotathing · 05/03/2025 14:08

I think you're not at the downsizing stage yet. You have too many still at home. Could you change your mortgage to a longer term, split payments over 15 years or so instead of 7 to reduce monthly outgoings?

I wouldn't be moving yet if redundancy is just a possibility.

Gekko21 · 05/03/2025 14:26

If your role is potentially at risk, I'd have thought you are likely to know one way or another quite soon. A house sale and purchase could take a year end-to-end in the current climate and that's if it doesn't fall through. So there are no guarantees it will solve your problems in the short term. Given all that, you might as well just wait to see whether you actually get made redundant and in the meantime, try and squirrel away some additional savings. During this period, you can spend time costing up the move and working out the pros and cons.

Property is an investment in your future. Yes, it's a home first and foremost and you don't know how much your asset with grow (or even if it could depreciate). However, once you've cashed in your chips and lived off the cash, that money is gone and you can't draw down on it in the future. Might you need it more in 10 or 20 years time than you do today?

Cindycane · 05/03/2025 15:23

So to confirm is there an actual house you have seen that you are thinking of buying or is this still just hypothetical? When you say debt free is it just the mortgage or any other unsecured debts you are concerned about keeping up payments on if you are made redundant.

Would two of your DC need to share a bedroom if you move to the semi as that seems unlikely to work unless they are students only at home on a part time basis or it's only for a short period of time and one will be moving out soon anyway.

Ultimately if you won't be able to pay the mortgage if you are made redundant and can't find another role quickly then downsizing may be something you have to do, but if there is any way you can postpone a move for a few years time I wonder if you might go into it differently. Is this definitely the location and type of house you see yourselves retiring into in future or just a stop gap to address a financially tight couple of years. Like pp said with costs of moving it's a lot for a short term solution.

hoodiemassive · 05/03/2025 16:30

We did it - not for the feint-hearted though!

We are a family of 5 with one toilet and 2 years in it's been do-able.

I got rid of 2/3 of our stuff though as we have a tiny home.

justasking111 · 05/03/2025 16:34

AcquadiP · 04/03/2025 20:32

In that case, I'd still do it just to have a smaller mortgage which I'd overpay until it was paid in full. I don't like having debt. None of us know what's around the corner: the loss of our job, a serious health issue etc

Have you calculated the stamp duty, solicitor, estate agent, removals and subtracted that from your assets?

New posts on this thread. Refresh page
Swipe left for the next trending thread