Pros and cons of a big mortgage
Discussion
After some advice about living with a much larger mortgage. I'm guessing it's mainly going to be cons!
Currently live in a nice 3 bed house in a great area. We pay almost double the base payment on the mortgage and have a decent amount left over. I'm pretty careful with money and log EVERYTHING I spend but we do still have a fairly good lifestyle. 3 decent cars, 4 holidays a year etc. In other areas we are careful, PAYG phones, No sky, ALDI shopping, printer paper from work!
I've always felt the property we're in would be a temporary one. It's a great place but has a very small plot (3 floors). I want somewhere with a decent driveway, double garage, large private garden 4 or 5 bed. This would mean almost doubling the mortgage loan.
It would probably bring it into line with the overpayment we are currently making but one concern is when rates go up (i'm guessing 1st quarter 2015) we wouldn't have as much spare.Of course we might be able to get a fixed rate deal which resolves this in the short term. Just to be clear we could afford it, it would just leave us with a lot less. The general worry of having a huge loan and a considerable amount of interest would still haunt me though.
The pros? Well I'd be in dream house. I could lavish time on my car in a double garage. Our lass could have her ducks she's always going on about. We'd have more room for guests and the kids when I have them (not often). Financially the % increase in value over time would amount to more equity in the property.
I'll admit there is only 2 of us and half the time I'm working away. Mrs who works full time would be home alone.
Is this just a silly pipe dream, would I end up regretting it? If we did move I hope not to be moving again mainly due to paying all that stamp!
p.s Should add we are 34/35 and both with fairly steady jobs.
Currently live in a nice 3 bed house in a great area. We pay almost double the base payment on the mortgage and have a decent amount left over. I'm pretty careful with money and log EVERYTHING I spend but we do still have a fairly good lifestyle. 3 decent cars, 4 holidays a year etc. In other areas we are careful, PAYG phones, No sky, ALDI shopping, printer paper from work!
I've always felt the property we're in would be a temporary one. It's a great place but has a very small plot (3 floors). I want somewhere with a decent driveway, double garage, large private garden 4 or 5 bed. This would mean almost doubling the mortgage loan.
It would probably bring it into line with the overpayment we are currently making but one concern is when rates go up (i'm guessing 1st quarter 2015) we wouldn't have as much spare.Of course we might be able to get a fixed rate deal which resolves this in the short term. Just to be clear we could afford it, it would just leave us with a lot less. The general worry of having a huge loan and a considerable amount of interest would still haunt me though.
The pros? Well I'd be in dream house. I could lavish time on my car in a double garage. Our lass could have her ducks she's always going on about. We'd have more room for guests and the kids when I have them (not often). Financially the % increase in value over time would amount to more equity in the property.
I'll admit there is only 2 of us and half the time I'm working away. Mrs who works full time would be home alone.
Is this just a silly pipe dream, would I end up regretting it? If we did move I hope not to be moving again mainly due to paying all that stamp!
p.s Should add we are 34/35 and both with fairly steady jobs.
Edited by Rick101 on Sunday 17th August 08:20
Cheers all, pretty much confirmed what I had considered already.
I'd like to think we would be there 10 years + so I'm pretty sure house prices will be higher than they are now.
Can't remember the last time we went into down for drinks/food. As long as I've got a decent local I'm happy
Mrs likes to cook and what been wanting a new kitchen suspect we'll get better value from moving to a house with a bigger one
Lots of room for my Sim racing gear and Hi-Fi setup
Double garage for performance car, 6 push bikes and camping gear, roof boxes etc. Might even get myself a motorbike again!
Decent garden for my BBQ activities and parties
Lodgers is a possibility, done it before but back when I was single. It's a bit defferent in a 'family' home but I suppose if it's big enough and they could have their own area, it would be possible. Worst comes to the worst we sell up and downsize again.
Should add Mrs has a small BTL with about 60K in, which she had considered as a long term investment but I suppose if we really got stuck we could use that....and only after then I'd consider selling a car!
I'd like to think we would be there 10 years + so I'm pretty sure house prices will be higher than they are now.
Can't remember the last time we went into down for drinks/food. As long as I've got a decent local I'm happy
Mrs likes to cook and what been wanting a new kitchen suspect we'll get better value from moving to a house with a bigger one
Lots of room for my Sim racing gear and Hi-Fi setup
Double garage for performance car, 6 push bikes and camping gear, roof boxes etc. Might even get myself a motorbike again!
Decent garden for my BBQ activities and parties
Lodgers is a possibility, done it before but back when I was single. It's a bit defferent in a 'family' home but I suppose if it's big enough and they could have their own area, it would be possible. Worst comes to the worst we sell up and downsize again.
Should add Mrs has a small BTL with about 60K in, which she had considered as a long term investment but I suppose if we really got stuck we could use that....and only after then I'd consider selling a car!
ts all over my lawn it'll be going on the smoker!alscar said:
Do it - long time dead and this isn't a rehearsal. We did the " mad " move 10 years ago - I was 41 and wife didn't work - we always knew if we didn't we would regret it - every time I drive up the drive I smile. It sounds as if you can afford it so best of luck.
Driving up the drive - Heaven!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.
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.
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