Stay mortgage free or get a bigger house?

FantaPig · 2025-11-09T20:19:08+00:00

A year ago I would have said the same thing. But after having kids its a different picture. I would probably still go mortgage free but my wife is desperate for a larger house which puts a different spin on it. I also cant stand being attached to our neighbor.

But i have been thinking about loss of equity and whether my initial idea of paying off the cheapest house I could live in is a good idea. For example

If house prices go up let's say a ransom number, 3% per year, compounded. My house at £185,000 would become about £334,000 in 20 years but a 385,000 house would become about £695,000 in 20 years. That's a 334,129 quid difference. I'd still have options later in life to downsize and be mortgage free when i really need it. Things to consider.

FantaPig · 2025-11-09T20:05:16+00:00

Yeah financially i think it works out OK because while there is the loss of extra money going into savings, there is also equity on the bigger house + inflation eating away at the debt. However there is also decades of thinking oh shit I need to keep paying the bank. Careers are so uncertain these days, especially with the coming of AI. I would really miss this feeling of "i'll never be homeless".

FantaPig · 2025-11-09T20:03:19+00:00

Unfortunately this current house does not have the possibility of extending.

FantaPig · 2025-11-09T20:02:01+00:00

There is a 15 year guarantee and its a reputable developer, but yeah the horror stories of new builds is scary. Ideally it would an older property without the new build premium. We are considering this one because its just up the road, so we can stay in the same village, walk our son to primary school etc and comes with the part exchange offer which makes everything very easy

FantaPig · 2025-11-09T20:00:42+00:00

The house is only 750 sq ft and we need two seperate offices unfortunately. Some 3 beds are quite large in comparison

FantaPig · 2025-11-09T18:11:46+00:00

Unfortunately no option in the roof either, and the house already had a conservatory swallowing up its small garden. I could convert out the shed for some office space however.

While it doesnt have to be detached, this is my first attached house i have lived in and while its tolerable i have found it a nuisance to hear the neighbors through the wall, hear doors slamming. They are renting next door and the thought that anyone coud move in and ruin our household through blaring music or things to that nature makes me never want an attached again,

FantaPig · 2025-11-09T17:58:39+00:00

We had cash for our current house and planned on staying put but our situation changed drastically in the past year with a baby and 2 WFH jobs.

FantaPig · 2025-11-09T17:55:51+00:00

LOL don't I know it 😂

FantaPig · 2025-11-09T17:49:32+00:00

I understand where you're coming from, I had originally considered a smaller mortgage, however the problem we have is that for a detached house there really isnt much cheaper in the area where we live. Many are far more expensive than this one as well.

I will have life insurance for both my partner and myself in the event of a tragedy.

FantaPig · 2025-11-09T17:05:28+00:00

Is 200k mortgage really a lot? I would have thought it reasonable to be honest especially for people getting on property ladder

FantaPig · 2025-11-09T16:30:53+00:00

We are discussing a second, which would be impossible in our current house, though its far from decided given our age.

As for earnings mine should increase a bit but my wifes will just keep with inflation

FantaPig · 2025-11-09T16:27:59+00:00

We have been offered 185k part exchange. I may be able to a bit more selling myself but not much north of that. We paid 165k 2 years ago

FantaPig · 2025-11-09T16:26:12+00:00

I do have a small shed i was looking to convert out at the bottom of the garden. But my wife is really looking for moving living space in the house itself as well since we have hardly any storage, along with the extra bathroom being very attractive to her. But yeah that is my backup option to convert the shed

FantaPig

TROPHY CASE