Active discussions

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To feel panic to owe this much on my mortgage?

183 replies

Seoalp · 08/05/2024 13:33

I’m 36 and recently took stock of my finances after separating from my partner and I am now a single parent to a nursery age child. I own my home but it has an outstanding mortgage of 220k. I feel that approaching 40 this is an awful situation. I have 10k savings and a car on finance. Would you downsize to remove the mortgage? I can manage the repayments but 220k feels like SO much money to owe. I am awake most nights recently worrying about it. My friends never discuss finances at all so I have no frame of reference and feel very alone.

OP posts:
Original poster
Seoalp · 08/05/2024 13:38

I can manage the repayments and I do overpay about 500 a month but it just feels like it’s such a huge amount. 220k! It’s loads. The house value is around 500k and it’s only gone up 15k in the last two years so not exactly a lot either. I just feel like it’s never ending

OP posts:
ShesRunningOutTheDoor · 08/05/2024 13:38

rent tends to be more expensive than paying a mortgage. It’s good debt. At the end, you’ll have a considerable asset.
a smaller house would be a smaller asset.

WitchyWay · 08/05/2024 13:38

I'm 36 with a partner and kids. We will soon owe £450k mortgage on a £700k house. I'd imagine most of UK home owners in their 30s owe £200k+ depending on where they live.

I realise that if anything happens that means we can't afford the repayments we may need to move. But it doesn't keep me up at night. I love the house and it's worth it to me and is an investment. I appreciate that as a couple we have less risk though.

Nothing needs to be permenant. If it becomes a problem you can sell up, but you may meet someone in the future that means it becomes even more affordable.

SOBplus · 08/05/2024 13:37

Don't focus on the total, focus on the payments, can you handle them even if something goes wrong (need a new boiler) and how high the interest rate is - can anything be done to lower the rate? What are the price appreciation prospects for the house? In my area prices have gone up 70% every 10 years so it has been a great investment.

IOMQuestions · 08/05/2024 13:36

No, if you can manage the payments that's fine. You'll have a decent asset. If you sell now then you've got all sorts of costs.

If you aren't able to manage the payments at any point then you can think about it. But work out how long you have to go, you'll be paying off the capital soon and then it reduces drastically and starts to look more manageable.

It's just a bill.

If you are generally anxious it might be worth talking to your GP?

EggcornAcorn · 08/05/2024 13:36

You probably could do with one of the maths/finance whizzes on here popping on to talk through your options.

In the meantime, are you in a position to overpay your mortgage regularly?

Technosaurus · 08/05/2024 13:36

Depends on the repayments.

If the repayments are affordable, the debt is affordable. If the repayments are causing you to not eat, the debt is unaffordable. The overall debt at this point doesn't matter, assuming you work?

Stressymadre · 08/05/2024 13:35

Well, I am 40 and also a single parent. I had to start again at the age of 38 when I split from my exH. I owe close to £250k! Hopefully that makes you feel better. I think it you can afford it and it suits your needs then worry about it later. For now, I need this mortgage as my children need individual rooms, a garden and they need to be in catchment. I plan to downsize and reduce my mortgage when they no longer need that.