stay put and save or buy a bigger property now?

[want2findout]

My boyfriend and I are getting married this year. We're currently living in my boyfriend's house which is a 3 bed terraced house worth approx �120K (mortgage of �65K), we have approx �35K in savings from the sale of my property. We're hoping to start a family as soon as we're married and will therefore like at least a semi detached with garden, possibly 4 bedrooms in say 2 years time but appreciate that a baby is not cheap and therefore would like to keep our outgoings (on property) the same if not less. We'd appreciate some advice/opinions as to what would be the best option for us now:

1. sell up and buy a larger property (worth approx �35k more), keeping mortgage at �65k hoping that it will be a worthwhile investment and that property prices will continue to rise.

2. Use the 35K to pay off a large chunk of our current mortgage leaving only a �30k mortgage on a �120k house. (saving on mortgage interest). Could put money saved in to high interest savings account as deposit for the next property.

* our fixed rate term is up in April therefore we would not incur early repayment charges on mortgage but we're really looking to make a decision ASAP to avoid being ripped off by the mortgage company!

What would you do in our situation?

[raysparx1]

I think I might be tempted to stay put, pay the 35K off of the mortgage, and keep paying the same amount as you are off of the mortgage, you will be mortgae free in no time then, interest rates are rising at the moment, so I can't see property prices shooting up as quickly as they have in the last 3 years, lots for you to think about, good luck, Ray

[want2findout]

Thanks Ray

[dolly pond]

If it were me (i am the dreaded estate agent) and it was my personal choice, i would buy a bigger house now as prices will always go up and the gap between what you have now, and what you want will get bigger, and once u have kids, its harder to move. Speak to your lender about moving, as by the time u sell and find something, your mortgage can be changed. Good luck.

[dizydosydoll]

I agree with Dolly and I live in a terrest house with a three year old with no garden and a busy rd so I would prefere to live in a bigger house with a garden but it seems so hard to make the move because we are in such a good position with the low morgage.

[want2findout]

Thanks dizydosydoll and dollypond. Yes, we're inclined to agree with you and have already started searching through property pages! it makes sense.

thanks again.