Does it make sense to downsize? Kenilworth expert explains
By Steve McKernan
17th Apr 2023 | Local Features
Typically, a larger home is acquired to accommodate a larger family. However, once the children have grown up and left, it may not be financially feasible to keep the current home.
Apart from the unused rooms, larger houses have higher insurance rates and maintenance expenses.
Downsizing your home can be an exciting and liberating experience, but it also requires careful planning and preparation.
According to a new research, 30 per cent of British homeowners have already considered changing their living arrangements to tackle the increasing cost of living.
But despite the apparent advantages, it is important to consider various factors before committing to a move.
Biggest Cost of Living Impact
The research indicates that basic household bills, such as energy costs and grocery bills, are having the greatest impact on people's finances, while only one in three homeowners with mortgages suggested that mortgage rates were the biggest cost of living impact they faced.
The research also highlights that downsizing, relocating or cohabiting are among the options being considered by those who want to reduce their largest single household expense – rent or mortgage.
Although just four per cent of respondents had moved to a smaller home, nearly two-thirds (60 per cent) said they would consider doing so.
Significant Financial Benefits
Reduced cost of living was identified as the primary benefit of downsizing, with 72 per cent naming it as a benefit and a third (33 per cent) ranking it first.
By selling larger homes, moving to lower monthly mortgage payments, or both, homeowners can realise significant financial benefits from downsizing.
The main disadvantages of downsizing are the high moving costs (39 per cent of respondents listed this as a top concern) and the lack of space for personal belongings (38 per cent).
Other top concerns include being far from family and friends (29 per cent) and living in an unfamiliar area (28 per cent).
Staying Connected with Loved Ones
Interestingly, people's expectations about how close they could move to find a smaller home were quite ambitious, with an average expected distance of 29 miles.
However, those who have already downsized moved an average of 54 miles away, which could pose challenges for those concerned about staying connected with loved ones.
While downsizing can lower mortgage costs and provide financial flexibility, it's important to consider the potential challenges such as the time it takes to move, distance from loved ones and reduced living space.
Want to talk about your mortgage options?
We're here to help you find a mortgage that is suitable for your needs and will explain the different options to find a mortgage type that matches your new circumstances.
For more information, contact Castle Mortgages Limited – telephone 01926 359326 Or email [email protected] or for a free independent valuation on your property contact Keller Williams – Kenilworth telephone 01926 359327
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
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