Have you been rattling around your big old house for quite some time now? If so, downsizing might be the right thing to do.
For many, the driving force behind downsizing is an empty nest. If the kids have grown up and moved on, having to look after a large empty house can become a burden. Why waste time cleaning empty rooms and paying to heat them every winter? If this sounds familiar to you, then moving to something smaller might be the right option.
Moving home can be emotionally tough, especially if you’ve lived somewhere for a long time and have many happy memories in that house. However, there can be many perks to downsizing, such as releasing your equity which will allow you to live more comfortably, well within your means, whilst giving you a financial boost.
Potentially, you could sell your house and use the equity to buy your new home. If you have any money left over, you can decide how to use this, whether it goes into a savings account or is perhaps kept to one side for your children’s inheritance.
Consider your finances
Even though it’s obvious, it’s important you understand the financial situation you’ll be in by selling your property and moving on.
It’s an obvious point to make, but once it’s sold, it’s sold. So, if your property goes up in value, you won’t be able to reap those rewards any longer.
The question to ask yourself is, are you happy to sell your house for what it is worth as it stands today? If you need or would like more money, then you’ll have to decide whether it’s worth staying put for longer in case the property’s value goes up. However, this is always a gamble as no one can predict which way the property market will turn.
Have a good sort out
Many people panic at the thought of downsizing. “How am I going to fit everything from my 4-bed house into a 2-bed property ?” If you’re having thoughts along these lines, then don’t panic. You will make everything fit because, at the end of the day, it has to! However, you will have to put in some hard work before you move and have a good clear out.
Things you may have held onto for years, just in case you might need them, will have to go. It’s time to be tougher on yourself. Obviously some things will hold deep sentimental value for you (we’re not suggesting you just throw these out on a whim) but there will be certain things that you know, deep down, you could live without.
Approach it as though you’re having a spring clean, a house detox. You’ll feel cleansed and more optimistic about the move afterwards.
All in all, the timing needs to be right for you but sometimes it can be difficult keeping a clear head when your emotions are involved, so it’s always worth speaking to a mortgage adviser. They can help you look at the situation from a logical point of view so that you can weigh up whether now is the right time for you to make the move and downsize. If you decide it is, then our mortgage advisers can search over 11,000 mortgage products, recommending the ones that are most suitable for you.