AIBU to be absolutely terrified of buying a house when I should be in a decent financial position?

Why do you assume that it's cheaper to pay a mortgage than rent? That's not necessarily the case. It will depend on the area and lots of other factors, including what happens to mortgage rates over the term of a very long mortgage.
I don't think anyone is proposing that the OP or anyone else rents forever and into retirement but it isn't necessarily a great financial decision to buy a house as soon as you can, especially not in a falling market, like now.

It is terrifying! When I first bought my first and favourite house I used to have nightmares that it was taken off me!

I bought without savings at 4% with Northern Rock! It then collapsed.

It was initially a struggle but honestly once you are in, you've got the things you need and you can chip away at your mortgage you'll feel amazing.

My favourite house repaid me in years of happiness, memories and I made quite a lot of money!

I totally understand where you are coming from. I have some money saved for a house and because it’s been nice to have the financial cushion, I’ll be worried once I no longer have that (even though I’ll have a house). I appreciate I’m very fortunate before anyone comes at me, but I do understand. Particularly if you are buying alone.

You are in a great position, but yes it is nerve wracking!

Keeping some savings to cover unexpected things is prudent - but I wonder if you have too much savings? Mortgage costs are all about compound interest - just like saving. So the longer you borrow and the higher the interest, the more it will cost.

A lower Loan to Value gets a lower interest rate. A shorter term lowers the total pay back. In your situation I suspect using more savings to lower the mortgage might make sense.

Some points to help:

• Most fixed mortgages can be overpaid by 10% each year. Check the details.
• If you are really stuck between roles you could ask for a mortgage holiday.
• The ability to take a lodger is great. The closer the lodger income is to covering the mortgage payments then the more housing security you have.
• Agreeing a longer term is another option you can negotiate with a mortgage company later on at re-mortgage point.
• You will need money for repairs, furniture, insurance etc. Also hold £1k available for potential fees for remortgage time.
• Long term fixed have an exit fee.
• You might find no arrangement fee mortgages are cheaper than those with fees despite the higher interest. I have (similar size mortgage), using the equivalent amount as the fee as an early repayment usually knocks £1k off the principal debt.

The key thing is pay as much off as you can as early as you can without getting into trouble. Know you options for flexibility in future if things change so you aren't worried when things change.

You're in an unbelievably fortunate position. I can't believe you're posting this really.

But think of it like this - what's the alternative? Well, it's renting and then you're paying someone else's mortgage and you have nothing at the end of it!

I got on the housing ladder at 20. With no savings. I'm now almost 57 and I am clearing the mortgage balance next month. The house is worth about £340k, and I will be able to live in it rent free for life, because it's all mine! And that's with a costly divorce behind me, otherwise I'd be mortgage free in a house worth double that.

Houses appreciate at a rate of circa 4% per annum, so you are living in a very valuable asset. Your equity will build and build, and you will be mortgage free in old age.

Actually in OP's position I'd be looking at putting down a deposit of £100k, using the £15k from family on fees and reno (then they can really see where their money is going), keeping back £50k (about 18 months incomings as it won't be taxed) and then spreading the £140k mortgage over 35 years. Would make the monthly payments about £700 based of 5% interest, and could then overpay by £3-400 a month giving imo the best balance of flexibility and liability.

I can empathise. It’s so consoling having a big buffer especially when you’re self-employed, but I agree with one or two others that having an even bigger deposit will bring down the debt and (possibly in the future reduce anxiety?). To get the savings back up consider a lodger (maybe someone who stays
Monday to Friday) or Airbnb the room. Also agree with not going with very long mortgage terms, as tempting as it is to pay low-ish repayments every month.

Presumably you will be paying less in mortgage than you do in rent? Therefore it makes financial sense to buy. Long term it means you live more cheaply in retirement as no mortgage or rent to pay.

They don't necessarily need it, some families offer support with purchasing.

It's none of my business, but please don't go for a 35 year mortgage. I really feel that should be illegal except for people in financial difficulty.

Look at a 10 year mortgage instead. You could fix at 4.89% for the whole term. Use some of the calculators to see what that would mean for your monthly payments.

It’s a calculated but sensible risk.

Your actual biggest risk in life will be if you partner up with what turns out to be a bad choice of partner.

Just be careful who you allow across your own threshold if it’s anything more than casual.

Have you also saved into a pension separately from the other savings? You have a fantastic amount saved but not so great if you’ve nothing also in a pension.

It's a big step so it's not surprising that you feel anxious, especially being single and self employed. I do think you are a bit anxious catastrophising about never working a day again.
I don't agree with @StormGazing that buying a house is a great investment though. It was if you could buy in 2001, especially in London/SE, where prices have risen masses overall. The current situation is very different, with prices falling in most areas now and likely to continue to fall.
Here is a recent report using land registry data showing an average annual fall in the last year of 4%, with major falls in some areas, particularly London and the South of the UK. Terraced/semis in a few areas have made small gains.

brickview.ai/reports/september-2026

Becoming a homeowner is one of the best ways of becoming financially secure.
I assume you've worked out your average monthly income, and the affordability of the mortgage payments, and you'll have an amazing financial cushion as well, as you have a lot in savings. I think you'll be ok.
Get a proper survey on the house if you haven't already - not just a mortgage valuation. Check you're not buying a money pit.

Try considering it in relation to the much worse alternative of renting…

We all have to live somewhere, how much would renting cost you?

Maybe subtract the rental cost off the monthly mortgage purchase cost and that will tell you how much you are paying extra for the luxury of a long-term investment rather than buying a house for a landlord.

Congratulations for being in the position you are.

It sounds like a lot of the fear is driven by what will happen if you can no longer work. A solution to this would be to invest in good income protection and/or critical illness cover which would pay out in that exact situation.

Might this being in place be enough to allay that anxiety and let you enjoy your new home?

Congrats!
if you are currently renting, you will not be paying much more for the mortgage. I would use £90K of savings as deposit then you have £65k +£15k for the renovation work and still around £50k saved that you can add to. That’s over a year’s salary saved!

You’re in the best possible position, OP. It’s a buyer’s market. You’re in a good position to negotiate and get a bargain.
Try not to overthink it, you’re in a better position than most.
As long as you have a 2 bed property, you could always let out a room if you end up in a lean period, work wise.

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The house is worth the money. The new bathroom, kitchen etc probably less so. Have a look at the Rebel Finance School for financial planning and security.

@BeQuaintLion
It feels like a huge undertaking, even more so if you're self employed.

I was a single parent, one wage coming in, drove myself mad worrying that I could lose my job, get ill, something huge might go wrong and I won't have the money to sort it.

I went for it and nothing really terrible happened, jobs needed doing, new boiler, had new windows and patio doors put in, new soffits and facias, had a damp patch fixed (not all at the same time) saved up for each bigish expense.

I certainly wasn't in the prime position you're in, you have a huge buffer if anything goes wrong plus you could always get a lodger if you found times got hard.

Tbh if you were renting you'd always find the rent money.

Try not to panic, get yourself a Pinterest board and start planning decor, doesn't have to be expensive, get excited.

Im a dab hand at DIY now, give it a go (thanks YouTube 😁).
Ive tiled a bathroom, layed a wooden floor, re-grouted some dodgy cement in the brickwork outside, made a step out of bricks and a paving slab, can hang wallpaper, paint, fixed a hole in the ceiling.

Go for it ❤️

The best thing I’ve ever done is invest in our homes, bought our first home for £40k in 2001, in our second home now, spend money on extension and fancification and we’ll be selling for £8-900k(relatively speaking) in 12-18 months. It’s a sound investment, and you have plenty of savings which you can find high interest savings for. Look at a few high street banks they have 8% at the moment if you add up to £200 a month, I’ve started one of these and will see if I can open another when I get around to it at a different bank (Lloyds), I’ve also got money in ISAs and various other places just accumulating interest… you should find out what works best for you. Overpayment of the mortgage payments may be a thought too maybe?
goodnluxk and remember it’s a big step but it’s a solid and worthwhile investment, you’re paying off your own home now rather than renting and paying off someone else’s home