Pros and cons of a big mortgage

[Jasandjules]

Rick101 said:

p.s Should add we are 34/35 and both with fairly steady jobs.

This is a question only you can decide.

For example, do you want kids? If so, a move to a house with a better school might be sensible.

Personally, I love a double garage, but we only have half an acre of land. I want more, and as I work from home I get to enjoy it a little.

Summer evenings can be spent with a BBQ whilst the dogs mooch around. We have plenty of room if friends want to visit for the weekend (two spare bedrooms). Life is much nicer in a nicer (read larger) house....

With the larger property comes (generally) better neighbours too.. Which improve the quality of home life immensely.

So, if you want these things, then in my view you go for it. Personally, I have no idea what my house is worth now, more or less than I paid for it. That will only matter when it comes to selling. In the meantime I am living in it. That is after all what it is for. If you want an investment then go get some buy to lets......

[uuf361]

I think this is a very personal thing.....

I moved back to the UK in 2005 and moved into a house I'd been renting out (I bought it on a whim really originally due to spiraling house prices) )and over a few years changed it to make it mine but always thought I'd like something a bit nicer (there was nothing wrong with - a 4 bed detached on a modern estate.

I moved in December 2012 and increased my mortgage almost 5 fold but to a house I can now see myself staying in for a very long time - it's twice the size and has parking for 10 (versus 2 at the old place).......worked out well for me, and I'm very happy and now working on paying off the mortgage and look forward to retirement (had I been in the old place I wouldn't have a mortgage now).

[Rick101]

Have 2 kids from old relationship, 12 & 13. Only come occasionally but more room for them would be nice. If they do ever decide they would rather stay with me it would be good to be able to do it without having to worry about living arrangements.

Getting ours valued on Wed. Only been there 2 years so have a pretty good idea already. House is mostly in great spec with new carpets and blinds only going in a few weeks ago so should sell quickly.

[Ari]

Simpo Two said:

I would just add, as a witness to the 1990's 15% interest rate bloodbath, that history usually repeats itself. It's just a question of when.

Nah, the gubberment have banned falling house prices and high (or even normal) interest rates.

Did you do it OP?

[gangzoom]

We're in a similar situation, early 30's been in our current house for quite a few years but both know we want something nicer/bigger for our 'forever' home.

So currently paying back the mortgage like mad, infact could be mortgage free on the current house in the next 2-3 years. Plan is than to sell the current house and use the money as deposit for the next house. The mortgage for the next house be nearly triple what we are paying now, but we're lucky enough it still leaves us with a decent amount of money left over at end of the month.

I've always taken the view your main house is a home first and everything else second. So not really bothered about house prices etc, but interest rates do worry me. I remember my parents really struggling to pay the mortgage when rates hit 12-13% and your be stupid to think that wouldn't happen again. So a long term fixed rate is a no-brainer for us, with a view of reducing the overall mortgage as quickly as possible till we can safely stomach a 3-4% rise in rates without worry.