Mortgage free Vs Upgrading
Discussion
Not sure if this is best here of the finance forum.
Situation is we'll have paid off our mortgage this year. Current house is a ~1900 4 Bed semi which we've lived in for 13.5 years. We love the house, location is good etc it's big enough for our family of 4 (kids are almost 5 and 2 no more planned). There's a few things about the house which I don't like but can't do much about.
We have a drive big enough for 2 cars, to get this had to sacrifice an old prefab garage. I'd ideally like a garage but isn't really any scope to do this.
I'd like a bigger more useable garden. It's not tiny there is a small-ish lawned area big enough for the kids to have a play kick about.
The house was gutted when we moved in and done top to bottom, it's getting to the stage we need to start freshening it up again, kitchen could do with being replaced, we don't have a downstairs toilet so we were considering an extension to incorporate a WC and utility but don't think the cost will be worth the benefit.
My wife an I will probably WFH for good now, we have one office but could do with another, which ideally means doing something in the loft.
We're going to get the house valued next week to see where we're at. Problem is as it's a big house we'd really have to go towards the top of the local market to get a tangible upgrade. This would mean getting a 100-150K mortgage. Something has come up locally which has caught my eye, huge gardens inc a small wood, double garage. Jobs are as secure as they can be in these times.
When I was montgage free I was considering a new car, but looking at the options I'm thinking of scaling this back and investing that in a new house.
Situation is we'll have paid off our mortgage this year. Current house is a ~1900 4 Bed semi which we've lived in for 13.5 years. We love the house, location is good etc it's big enough for our family of 4 (kids are almost 5 and 2 no more planned). There's a few things about the house which I don't like but can't do much about.
We have a drive big enough for 2 cars, to get this had to sacrifice an old prefab garage. I'd ideally like a garage but isn't really any scope to do this.
I'd like a bigger more useable garden. It's not tiny there is a small-ish lawned area big enough for the kids to have a play kick about.
The house was gutted when we moved in and done top to bottom, it's getting to the stage we need to start freshening it up again, kitchen could do with being replaced, we don't have a downstairs toilet so we were considering an extension to incorporate a WC and utility but don't think the cost will be worth the benefit.
My wife an I will probably WFH for good now, we have one office but could do with another, which ideally means doing something in the loft.
We're going to get the house valued next week to see where we're at. Problem is as it's a big house we'd really have to go towards the top of the local market to get a tangible upgrade. This would mean getting a 100-150K mortgage. Something has come up locally which has caught my eye, huge gardens inc a small wood, double garage. Jobs are as secure as they can be in these times.
When I was montgage free I was considering a new car, but looking at the options I'm thinking of scaling this back and investing that in a new house.
You're only investing in a house if you plan to sell it at a later date, otherwise you're spending to make it nicer to live in.
So as with the utility and downstairs wc, it's worth it if it makes you're life better regardless of if it increases house value.
If you're only doing it so you can sell then it's only worth it if it makes the house more valuable or easier to sell.
So the question is i guess, is this your "forever" home or will you be moving in the future. Once you've answered that question you can answer the others.
So as with the utility and downstairs wc, it's worth it if it makes you're life better regardless of if it increases house value.
If you're only doing it so you can sell then it's only worth it if it makes the house more valuable or easier to sell.
So the question is i guess, is this your "forever" home or will you be moving in the future. Once you've answered that question you can answer the others.
a311 said:
Not sure if this is best here of the finance forum.
Situation is we'll have paid off our mortgage this year. Current house is a ~1900 4 Bed semi which we've lived in for 13.5 years. We love the house, location is good etc it's big enough for our family of 4 (kids are almost 5 and 2 no more planned). There's a few things about the house which I don't like but can't do much about.
We have a drive big enough for 2 cars, to get this had to sacrifice an old prefab garage. I'd ideally like a garage but isn't really any scope to do this.
I'd like a bigger more useable garden. It's not tiny there is a small-ish lawned area big enough for the kids to have a play kick about.
The house was gutted when we moved in and done top to bottom, it's getting to the stage we need to start freshening it up again, kitchen could do with being replaced, we don't have a downstairs toilet so we were considering an extension to incorporate a WC and utility but don't think the cost will be worth the benefit.
My wife an I will probably WFH for good now, we have one office but could do with another, which ideally means doing something in the loft.
We're going to get the house valued next week to see where we're at. Problem is as it's a big house we'd really have to go towards the top of the local market to get a tangible upgrade. This would mean getting a 100-150K mortgage. Something has come up locally which has caught my eye, huge gardens inc a small wood, double garage. Jobs are as secure as they can be in these times.
When I was montgage free I was considering a new car, but looking at the options I'm thinking of scaling this back and investing that in a new house.
Your kids are very young the outside space will become more and more useful up until the age of 12 when suddenly they won't use it at all.Situation is we'll have paid off our mortgage this year. Current house is a ~1900 4 Bed semi which we've lived in for 13.5 years. We love the house, location is good etc it's big enough for our family of 4 (kids are almost 5 and 2 no more planned). There's a few things about the house which I don't like but can't do much about.
We have a drive big enough for 2 cars, to get this had to sacrifice an old prefab garage. I'd ideally like a garage but isn't really any scope to do this.
I'd like a bigger more useable garden. It's not tiny there is a small-ish lawned area big enough for the kids to have a play kick about.
The house was gutted when we moved in and done top to bottom, it's getting to the stage we need to start freshening it up again, kitchen could do with being replaced, we don't have a downstairs toilet so we were considering an extension to incorporate a WC and utility but don't think the cost will be worth the benefit.
My wife an I will probably WFH for good now, we have one office but could do with another, which ideally means doing something in the loft.
We're going to get the house valued next week to see where we're at. Problem is as it's a big house we'd really have to go towards the top of the local market to get a tangible upgrade. This would mean getting a 100-150K mortgage. Something has come up locally which has caught my eye, huge gardens inc a small wood, double garage. Jobs are as secure as they can be in these times.
When I was montgage free I was considering a new car, but looking at the options I'm thinking of scaling this back and investing that in a new house.
Borrowing is extremely cheap at the moment and by the sound of it the new mortgage will immediately be visible to you from a value perspective.
My wife and I had a slightly different set of parameters (age of children being the main one) and we decided to move. We were mortgage free and decided to take on about 150k, We haven't regretted it for a second!
I think your main questions is actually "Do we want the hassle and stress of moving?"
It depends on the term of the mortgage, but based on the size of it, you might be spending around £600-£700 a month paying it off. Does that money give you more quality of life being spent on the house you're looking for, or on other things?
One factor to consider is that houses tend to hold their value, so even if you never sell it, your children will not only reap both the rewards of a bigger and better home, but also the money you paid into it in years to come. A car is typically a depreciating asset, and a holiday is nothing but memories (and children love simple coastal holidays just as much as fancy ones!)
It really depends on what you value more.
One factor to consider is that houses tend to hold their value, so even if you never sell it, your children will not only reap both the rewards of a bigger and better home, but also the money you paid into it in years to come. A car is typically a depreciating asset, and a holiday is nothing but memories (and children love simple coastal holidays just as much as fancy ones!)
It really depends on what you value more.
sociopath said:
You're only investing in a house if you plan to sell it at a later date, otherwise you're spending to make it nicer to live in.
So as with the utility and downstairs wc, it's worth it if it makes you're life better regardless of if it increases house value.
If you're only doing it so you can sell then it's only worth it if it makes the house more valuable or easier to sell.
So the question is i guess, is this your "forever" home or will you be moving in the future. Once you've answered that question you can answer the others.
If we did any real works in the house i.e. downstairs toilet we'd be staying put. We're ok just now with the age of the kids but I think an extra toilet would be useful as they get older. There's no ensuite etc, we've never had one and can't say it bothers us hugely but I guess when the kids are older that would also be useful.So as with the utility and downstairs wc, it's worth it if it makes you're life better regardless of if it increases house value.
If you're only doing it so you can sell then it's only worth it if it makes the house more valuable or easier to sell.
So the question is i guess, is this your "forever" home or will you be moving in the future. Once you've answered that question you can answer the others.
blackmme said:
Your kids are very young the outside space will become more and more useful up until the age of 12 when suddenly they won't use it at all.
Borrowing is extremely cheap at the moment and by the sound of it the new mortgage will immediately be visible to you from a value perspective.
My wife and I had a slightly different set of parameters (age of children being the main one) and we decided to move. We were mortgage free and decided to take on about 150k, We haven't regretted it for a second!
I think your main questions is actually "Do we want the hassle and stress of moving?"
The kids would definitely benefit from the big garden, has swing set etc scope to build a tree house etc but on the other hand I think kids are content with whatever they have. I usually make the argument with myself over the current houses garden that as we're in Cumbria we're maybe getting good use of a garden for a few months of the years, the rest of the time it's pissing down Borrowing is extremely cheap at the moment and by the sound of it the new mortgage will immediately be visible to you from a value perspective.
My wife and I had a slightly different set of parameters (age of children being the main one) and we decided to move. We were mortgage free and decided to take on about 150k, We haven't regretted it for a second!
I think your main questions is actually "Do we want the hassle and stress of moving?"
This particular house also has a large vegetable garden, something I dabble in but If I'm WFH for good something I can have the time to do more of as I get older. I've not really thought of what the goal is once the mortgage is paid off I'd always thought I'd start to plan for an earlier retirement.
SweptVolume said:
It depends on the term of the mortgage, but based on the size of it, you might be spending around £600-£700 a month paying it off. Does that money give you more quality of life being spent on the house you're looking for, or on other things?
One factor to consider is that houses tend to hold their value, so even if you never sell it, your children will not only reap both the rewards of a bigger and better home, but also the money you paid into it in years to come. A car is typically a depreciating asset, and a holiday is nothing but memories (and children love simple coastal holidays just as much as fancy ones!)
It really depends on what you value more.
A mortgage has always just been something that's 'there' for us. We've over paid a lot, once it's paid off we'll be ~1K a month better off. On one had it's not what you'd call life changing money, we don't have an extravagant life style, but don't want for anything when we could we still do holidays where and when we want. As above we'd probably start putting some away (into what I don't know) for the future and possibly a nicer car and nicer holidays. That's about it. My wife will possibly go back to full time once the kids are both in fulltime school so earning should increase.One factor to consider is that houses tend to hold their value, so even if you never sell it, your children will not only reap both the rewards of a bigger and better home, but also the money you paid into it in years to come. A car is typically a depreciating asset, and a holiday is nothing but memories (and children love simple coastal holidays just as much as fancy ones!)
It really depends on what you value more.
I suppose those who've WFH a lot in lockdown has made them reassess what they get out of there house. During April onwards last year because we were home we got to sit outside a lot more too.
Back in 2018, we were about 3 paydays of adding to our savings away from being mortgage free. At the time we had a 6 and 1 year old. We saw a plot of land for sale, bought it. Did a self build at a cost of over £700k, now we have a £465k mortgage. 
Sometimes i think it was stupid, then i look around at the lovely house we have and how much more space the kids have and i don't regret it for a secoond. It'll almost always benefit you financially to upsize now, because when you downsize later the % growth in the market was worth more in the more expensive property
Sometimes i think it was stupid, then i look around at the lovely house we have and how much more space the kids have and i don't regret it for a secoond. It'll almost always benefit you financially to upsize now, because when you downsize later the % growth in the market was worth more in the more expensive property
Thanks for the replies, some things I didn't really think of. It's probably the mrs who needs to come around to moving more than me. She a bit more risk averse.
I've kept it instant access for the time being but I'm getting about 16p a month interest on 20 odd grand which is pitiful
Pretty much a standard 37 hour week I work those over 4 days to have one day a week off. i.e. so long as I do the hours there is a great deal of flexibiltiy.
Register1 said:
Money in teh bank is pointless.
Either go for bigger house or go for 2 smaller houses.
Live in 1, rent the other.
Houses easy make 5% a year, never going to get that in any bank.
True, I have a decent wedge of cash that has built up more during the lockdown(s).Either go for bigger house or go for 2 smaller houses.
Live in 1, rent the other.
Houses easy make 5% a year, never going to get that in any bank.
I've kept it instant access for the time being but I'm getting about 16p a month interest on 20 odd grand which is pitiful
eltax91 said:
Back in 2018, we were about 3 paydays of adding to our savings away from being mortgage free. At the time we had a 6 and 1 year old. We saw a plot of l.and for sale, bought it. Did a self build at a cost of over £700k, now we have a £465k mortgage.
Sometimes i think it was stupid, then i look around at the lovely house we have and how much more space the kids have and i don't regret it for a secoond. It'll almost always benefit you financially to upsize now, because when you downsize later the % growth in the market was worth more in the more expensive property
Gladly not talking those sort of borrowing figures! I can't see interest rates going up with what the government has borrowed. Never really thought of it but one day hopefully a long way off we'll be getting some inheritance.Sometimes i think it was stupid, then i look around at the lovely house we have and how much more space the kids have and i don't regret it for a secoond. It'll almost always benefit you financially to upsize now, because when you downsize later the % growth in the market was worth more in the more expensive property
hyphen said:
Is it a 9-5 job and something you enjoy? Then go for it.
If a stressful job/long hours. Then perhaps time with kids first.
Pretty much. Although as I've mostly worked from home since last April I'm a bit sick of it now, my employer is going to allow those who want to class there home as there main location to continue to do so. It's harder to see at the moment but once life is back to normal there will be lots of benefits to WFH.If a stressful job/long hours. Then perhaps time with kids first.
Pretty much a standard 37 hour week I work those over 4 days to have one day a week off. i.e. so long as I do the hours there is a great deal of flexibiltiy.
bristolbaron said:
late 30s/early 40’s I’d jump at another move if it gave exactly what you wanted. Early 50’s I’d be focusing on winding down.
I agree with the above post - current age, job security, appetite for enforced continued working at current wage level (to pay mortgage), retirement age intention etc. would all heavily influence my decision.We were in a similar position to you 18 months ago - not mortgage free but very comfortable and on course to pay it off quickly; toddler on the scene; in a house that we thought plenty big enough for us (and it was) and we were happy there.
However, we took on a second mortgage and moved to a countryside village a few mins walk from a beach, and it was the best thing we could have done.
Yes, there is satisfaction/security from being mortgage free, but don’t underestimate the enhanced quality of living you (and more importantly, your family as a whole) might gain from greater outdoor space, trees, vegetable garden, possible move to a detached home.
And whilst with only three of us we didn’t strictly ‘need’ a utility room, garage, open plan kitchen/diner/living area, sun lounge etc. they have undoubtedly been fantastic to have, and we should have moved earlier. Those things, plus a downstairs WC, en-suite etc. will only get more useful and important as your kids get older. Never mind the huge WFH aspect.
Financials/lifestyle allowing, and with the right housing choice made, I doubt you’ll regret the move.
To give a different perspective.
A few years back We (me, the wife and our 5 kids) looked at moving from our 3 bed terraced house to an end of terrace/semi detached with some potential, we saw a few we really liked but would cost an additional £100k to buy plus the cost of any extension or renovations. At the time we were gutted that we couldn't get our house sold so we proceed and we gave up after a year of our house being on the market. I ended up getting an architect over with the briefing of finding a way to get us an extra bedroom, downstairs WC, a bigger kitchen and more room for the kids. We completed our build last year and we've got everything we wanted and it's cost us significantly less than if we had moved.
A few years back We (me, the wife and our 5 kids) looked at moving from our 3 bed terraced house to an end of terrace/semi detached with some potential, we saw a few we really liked but would cost an additional £100k to buy plus the cost of any extension or renovations. At the time we were gutted that we couldn't get our house sold so we proceed and we gave up after a year of our house being on the market. I ended up getting an architect over with the briefing of finding a way to get us an extra bedroom, downstairs WC, a bigger kitchen and more room for the kids. We completed our build last year and we've got everything we wanted and it's cost us significantly less than if we had moved.
a311 said:
bristolbaron said:
Did I miss how old you/wife are now? Guessing based on age of kids, but late 30s/early 40’s I’d jump at another move if it gave exactly what you wanted. Early 50’s I’d be focusing on winding down.
Yeah we're both 38.Pile every penny you've got into pensions and property then when the kids fork off do a big downsize, pay off the mortgage if you've still got one and invest the proceeds for income and spend the rest of your life sitting in the sunshine drinking beer.
Worked for me.
Being mortgage free was a big plus.
When young my target for retirement was 55. That meant long term financial planning with a balance to enjoy life at the same time. Over the years ups and downs came along, redundancy, return to uni as a mature student, job changes.
In the end I managed retiring at 60. Downsized the house but moved to a better location for retirement. Spent on some things ready for retirement whilst still earning. This is our final move.
Op you seem to be thinking in advance but need to think on. Getting a lifestyle balance along the way is a buggeration factor that reigns you in.
Finances......make your money work harder. We are having our annual financial review with our advisor next week. We have a chosen risk level for investments. Over the last year they have made 9.5% increase during the Covid period. We have a “warchest “ set aside for quick purchases in easy access accounts, moved as necessary.
Think hard about when you want to retire, what you want to do, get your finances sorted to do that whilst maintaining a lifestyle in the meantime.
My dad gave good advice. As a result when our children were born we set up long term savings to help with university costs. They were great when needed and gave a good buffer. Paid fees/accommodation and left them to use loans for their social life! You drink it you pay for it! They are in no hurry to pay their thus reduced loans off. They are repaying the minimum only. It is not a burden that is causing worry.
When young my target for retirement was 55. That meant long term financial planning with a balance to enjoy life at the same time. Over the years ups and downs came along, redundancy, return to uni as a mature student, job changes.
In the end I managed retiring at 60. Downsized the house but moved to a better location for retirement. Spent on some things ready for retirement whilst still earning. This is our final move.
Op you seem to be thinking in advance but need to think on. Getting a lifestyle balance along the way is a buggeration factor that reigns you in.
Finances......make your money work harder. We are having our annual financial review with our advisor next week. We have a chosen risk level for investments. Over the last year they have made 9.5% increase during the Covid period. We have a “warchest “ set aside for quick purchases in easy access accounts, moved as necessary.
Think hard about when you want to retire, what you want to do, get your finances sorted to do that whilst maintaining a lifestyle in the meantime.
My dad gave good advice. As a result when our children were born we set up long term savings to help with university costs. They were great when needed and gave a good buffer. Paid fees/accommodation and left them to use loans for their social life! You drink it you pay for it! They are in no hurry to pay their thus reduced loans off. They are repaying the minimum only. It is not a burden that is causing worry.
BoRED S2upid said:
oblio said:
It's a very comforting feeling knowing that you are mortgage free
I bet it is. Not having that regular lump going out every single month of your life must be great. 
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff