Currently in a conundrum about what to do next.
Background, 45 yrs old, two 3 yr old kids, married, £26k left on mortgage (house worth around £280k) with very affordable repayments, modest self employed income, absolutely no other debts (ie car loans, visa bills etc).
Choice one: Pay off mortgage - 11 years to go at £200 a month but a flexible mortgage so in reality it will be paid off in full in around 3 years. This means we can start to save for our kids later lives, have a modest income to enjoy. But the house is quite small and has no private garden. But it *is* in a perfect location for the best primary and secondary schools in the area and has beautiful countryside views (why we fell in love with it in the first place, long before kids came along).
Choice two: As it is looking like I am going to have a reasonable set of figures for last year, do I upgrade the house and go back to a larger mortgage (still wouldn't borrow more than around £150k so still relatively affordable). This would get us a house with a nice garden and more space for our kids to enjoy as they grow up.
Choice three: Sell the house, move into rented, put the 'profit' into a high (although I accept it won't be that high right now) interest account and hope that when interest rates start to rise at a point in the future I wil then get an income from that (and any extra I will be paying in) money that will far outstrip rental costs. Fair enough, this last option isn't well thought out yet.
Our heads are spinning with what to do next.