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Toms Take PinI am often asked should we go for the largest property we can get a mortgage for? Tom’s Take today will consider if there are any benefits to this strategy.

From a financial perspective, there will always be a limit on the value of your property. For example, you might spend £20,000 on an extension or a loft conversion but only increase your house value by £10,000. However, if you look at it from a life and living perspective, what does it matter? If you’re going to live in that property for the next 10 years, expand it to meet your needs. Work out how much the expansion would cost you over a 10-year period, would you rent that additional space in your house for £1000 per year? Personally, I believe you should do whatever you can to make your home comfortable and functional for your family. I will however caveat that last point, as it all has to be affordable. If you chose to use your mortgage to fund an extension, you may be able to cover the payments for now. But what if interest rates were to rise? If you read my recent Tom’s Take, market insight suggests that interest rises are a likely scenario in the current economic climate. Act with caution by calculating the worst-case scenario and budgeting for that. You should follow the same principle when buying a larger home. Work out what you want from a property and calculate the worst-case scenario. If you can afford that spectacular five bedroom detached house on Portsdown Hill if the interest rates rocketed, then in the words of Richard Branson “Screw it, let’s do it!”