In 2021, having “ridden the Covid wave” in London, events producer Tor Wilder-Fox moved out of the capital for a house in the countryside. “Like so many others, I left London chasing a slower, more spacious life. I thought I’d made the smart move; a chance to live somewhere that brought me peace, where I could still work, still create, but with breathing space I’d never had in the capital.” But four years later, she’s been forced to put her dream home back on the market. The 46-year-old, who lives on her own, sold her one-bedroom Islington flat for £550,000 and bought a Grade II-listed, 17th century home in the village of Henlow in Bedfordshire.

The dream house

She had grown up in the area and fell for the four-bedroom house, which also has two bathrooms, a large garden, period features, and a basement. Tor had ambitions of making it into a location home to generate a little extra income. “I love the house and the character and charm, and it was everything I was looking for.” She paid £720,000, funded by a £420,000 mortgage and £300,000 deposit, plus £17,500 in stamp duty. Her mortgage had a 1.74 per cent interest rate fixed for five years, which worked out at £1,300 a month on a repayment basis. While Tor found the house and village “a complete contrast to London – much quieter and fresher air”, she quickly realised that running and maintaining her new home came at a price. “I was definitely caught up in how affordable it seemed in comparison to the London prices I was used to. I underestimated just how many hidden and ongoing costs come with running a larger home – from heating and council tax to general upkeep – and they’ve escalated faster than anyone could have predicted.” (Photo: Nathan K Real Estate)

Change in council tax band

The first surprise was that her council tax band was changed from an E to an F, making her bill go up £90 a month. “The previous occupants had done improvements to the property, and it was worth more. As the new purchaser, I become liable for this.” With heating and electricity also increasing, Tor soon found her monthly outgoings (excluding council tax and mortgage) had gone up £300. To afford these increasing bills, Tor changed her mortgage so that it was interest only, reducing her monthly repayment to £800 but then, in the autumn of 2022, mortgage rates sky rocketed. Tor’s fixed rate deal ends in June 2026, at which point her rate will increase to the standard variable rate at 5.6 per cent. “My interest-only rate would be upped to £1,800 a month. That is assuming I stay on interest-only, which isn’t ideal and would likely increase as well.” If she went back to a repayment mortgage, this figure would be around £2,500 a month. Her mortgage balance is £412,000. (Photo: Brian A Jackson/Getty)

Sacrificing holidays and going out

“The reality is all my income goes on covering bills and the mortgage and it’s not a sustainable way to live.” In order to pay for her higher outgoings, Tor has sacrificed expensive holidays and going out. “This huge jump in prices, the cost-of-living crisis and rising energy prices have all forced me to consider downsizing. I am tired of working to live. I don’t live to work anymore.” She’s now put the house on the market for £865,000 and wants to move somewhere smaller and cheaper to be mortgage-free. “I’ve looked at the options, but selling is the only way to gain some sustainability.” (Photo: Andrew Matthews/PA)

Interested in Saffron Walden

She’s now interested in a one-bedroom character property in Saffron Walden, priced at £400,000, which she could buy in cash. “I’m not downsizing because I want to; I’m downsizing because I have to. I want to be mortgage-free, not because I’m giving up, but because I’m tired of living in constant financial anxiety.” Tor says she knows of other people in the same predicament. “They feel trapped. The property market is not booming, so people are unsure as to how to manoeuvre.” While she says she doesn’t want to comment on other people’s circumstances, she advises those looking to stretch themselves with a mortgage should run the numbers and be aware that they need a contingency if things fluctuate. “With interest rates and the cost of living, we are living in unprecedented times. I want to feel a bit more in control.” (Photo: Getty)

Cost-of-living, school fees and office work

Nathan Khider, owner of Nathan K Real Estate, who is selling Tor’s home, says he’s had a few clients in a similar situation, particularly in the £700,000 to £1million price bracket. “This is mainly the case with people who bought their homes back in 2021/2022 who are now looking to downsize with their end-of-term interest rates due to increase next year or within the next 18 months.” He says the cost-of-living, VAT charge on school fees and return to office working have also had an impact. (Photo: Natalia Gdovskaia/Getty)

Stamp duty an obstacle to many

One issue, Nathan says, that has prevented many from downsizing is the stamp duty they will need to pay on their new home. “Even if they downsize a little bit, they could still be paying £20,000 or £30,000 on stamp duty so they need to calculate whether the increase in rates is going to outweigh the stamp duty they’ve got to pay.” Although it’s been a bit of a rollercoaster, Tor says she has no regrets. “Hindsight is a wonderful thing, and the house served me at the time.” (Photo: Sviatlana Zyhmantovich/Getty)