Getting a new mortgage

[Citybreak1]

So my house is worth 40k more than I paid for it so I have been considering moving. I viewed some houses but only one street in particular is of interest. Should I move from a 2 bed to a 3 because I can afford it or is it better or stay put maybe be mortgage free sooner if I can pay it off sooner? With good mortgage rates coming this year it’s a hard choice as my current house is quite small and I estimate I need to spend 20k updating it.

 

[najaB]

That sounds like the kind of conversation you should have with a qualified (and accredited!) financial advisor.

Any advice we provide would be as reliable as "a bloke in the pub said."

 

[birchesgreen]

Do you need more space? Thats the only criterion i would use if thinking about a bigger house to be honest.

 

[Sun Chariot]

So my house is worth 40k more than I paid for it so I have been considering moving. I viewed some houses but only one street in particular is of interest. Should I move from a 2 bed to a 3 because I can afford it or is it better or stay put maybe be mortgage free sooner if I can pay it off sooner? With good mortgage rates coming this year it’s a hard choice as my current house is quite small and I estimate I need to spend 20k updating it.

Weigh up:

1) How many years left on your mortgage / how many months left on your current mortgage deal
If you'll need another 2-year or 5-year mortgage deal, how much more will you pay monthly on your CURRENT property? (assuming your current mortgage deal is a lower rate than the current deals).

2) Do you specifically NEED a bigger property, or a property in another area?
Chances are, you'll get more return on your cash, by spending on your current property to make it desirable for when you do sell it.

3) Overpay your current mortgage's monthly repayments ,if you're able to. It helps reduce the interest you're paying.

 

[gswindale]

Do you need the extra space gained from a bigger house?

What would the renovations to your existing house do value wise? I ask this as we were considering an extension, but the advice we had was that the £100k+ we'd spend was unlikely to add anything like that in value to the house.

 

[najaB]

I ask this as we were considering an extension, but the advice we had was that the £100k+ we'd spend was unlikely to add anything like that in value to the house.

The counter to that is if you would have got £100K worth of extra utility from your home. It's not just about cash value.

 

[gswindale]

The counter to that is if you would have got £100K worth of extra utility from your home. It's not just about cash value.

Indeed, but we'd have been skint and still needing to refresh other parts of the house,

 

[najaB]

Indeed, but we'd have been skint and still needing to refresh other parts of the house,

That sounds like a better reason not to do it than the (negligible) impact on the market value.

 

[Citybreak1]

Do you need more space? Thats the only criterion i would use if thinking about a bigger house to be honest.

My kitchen is small. Only a small extension could solve this. I stay in a quiet location so some other houses may be over looked by other houses or larger areas. I don’t need the space just two people living here but i can afford it as my house is worth more. I am not sure my house worth much more yet. Was a house a few weeks ago I was 70% on without seeing it. One I see me and my partner were 50/50 as it wasn’t close to railway station. Had some extra bathrooms but i fear by not having a car i would regret any move.

 

[Simon11]

How much is stamp duty for the move? How much will solicitors cost? Removal trucks?

This is the killer for most moves, so if you wish to move you may as well get the best place possible.

My parents in law, found that it was cheaper to extend their house than the cost of moving!


I didn't quite get your logic of "So my house is worth 40k more than I paid for it so I have been considering moving. " This will just mean that the next house will have likely increased more than 40k, meaning it is further away from what you can afford!

 

[Broucek]

How much is stamp duty for the move? How much will solicitors cost? Removal trucks?

This is the killer for most moves, so if you wish to move you may as well get the best place possible.

My parents in law, found that it was cheaper to extend their house than the cost of moving!


I didn't quite get your logic of "So my house is worth 40k more than I paid for it so I have been considering moving. " This will just mean that the next house will have likely increased more than 40k, meaning it is further away from what you can afford!

An exceptionally wise post....

 

[Citybreak1]

We have moving sorted as we usually get family and hire a van. I found the issue was bickering in family about location or wardrobe space. Was due to value my house today but feel drained by the process and need to recharge the batteries and go again. My wife wasn’t keen to move but she liked the house we seen and wanted to go ahead. No house has everything or ideal location some less bathrooms some less wardrobes. My own place i don’t buy much room to extend. Definitely can’t get the kitchen and kitchen extra bathroom space i can with a move. Perhaps I just like moving as I have been exploring the idea for 3 years of 5 being here as I always watch property markets. I knew when I moved here size was limited but location better. I’m trying to get fine location but extra space.

 

[Crossover]

The other aspect is you know your houses foibles and the work it needs.

You could get another house which looks good but further down the line you find unexpected problems with it

 

[DarloRich]

• Seek the advice of an independent financial advisor.
• Get a decent local solicitor involved.
• Don't go with anyone offered by the mortgage company or estate agent.
• Don't trust a word of the estate agent.

Only you can decide what is best for you. Speak to qualified independent advisors and ignore the wibbling of internet types. Except the 4 points above. They are essential!

 

[Sun Chariot]

No house has everything or ideal location some less bathrooms some less wardrobes. My own place i don’t buy much room to extend. Definitely can’t get the kitchen and extra bathroom space.

If you have the budget and appetite for it, consider a "doer-upper" if the property's price and location appeal.

My wife and I spent 4 years and a sizeable budget, with a 3-bedroomed house in need of everything. But, by extending and fully refurbishing of every room, we gained a second bathroom, fully fitted wardrobes & storage in each bedroom, a big kitchen plus diner, plus every part of the house future-proofed and exactly how we want it.

It's not for the faint-hearted but - for us - it was worth it.

 

[D365]

No house has everything or ideal location some less bathrooms some less wardrobes.

As per @Sun Chariot comment above - if you find a suitable property, could you not consider adding fitted wardrobes?