To try to live off this rather than selling the house

[NancyDrewIsCheckingUpOnYou]

I'm a single parent and have two DCs, aged 11 and 14. They're with me full time.

My ex-H is no longer able to contribute much financially (for health reasons) and my income is about to drop by about £1,750 a month (from £3,400 to £1,650). I think I can increase my earnings by about £750, as I will be able to work more hours now that DD is starting secondary, but that still leaves £1,000 to account for.

My monthly mortgage payment is coincidentally just under £1,000, so an obvious solution would be to move house. I would be able to buy something outright just with the equity and do away with the mortgage completely. I realise I am lucky to be in that position. However, for various reasons, I really, really want to avoid moving if at all possible. (There are 10 years left on the mortgage, if that's relevant.)

So, my question is aibu to try and cut my outgoings instead of moving house? With a monthly income of about £2,400, this would mean a monthly budget of:

£1,000 mortgage
£450 other monthly direct debits: council tax, gas, electricity, water, mobile phones, broadband/TV, boiler cover, children's pocket money, etc.
£450 for ongoing essentials: food, clothes, petrol (I don't drive much), presents, entertainment, etc.
£400 for annual expenses divided by 12: Christmas, children's birthdays, holidays, school uniforms, car insurance, home insurance, TV licence, MOT, car repairs, breakdown cover, etc.
£100 for house maintenance/emergencies/things going wrong.

I also have a small amount in savings for emergencies. I don't have any debts other than the mortgage.

That sounds like a good plan and I too would work to cut experience except expenditure rather than sell the house. Are there any other employment options you could take to further increase earnings over the next 10 years whilst you’ve still got the mortgage? Also, are you on the very best deal you can get mortgage wise??

Could you re-mortgage for a better interest rate and cut your mortgage down?

Is changing your mortgage to say 15 years an option? That would give you more available money each month, and you could always change to a shorter time length when dc have left home

If you don't drive much would a car club work out cheaper than running a car in full? Location dependent obviously- London rather than rural ... and assuming not needed everyday.

Op speak to your mortgage lender. See if you can max out the term of your mortgage and reduce the payments that way. Yes it will cost you more over time, but it might make a huge difference.

Meercat the hell out of your insurance policies, also utilities suppliers - energy, mobiles and broadband etc. Don't upgrade your phone when you're next out of contract, just pay for the line rental.

You sound like you've got your head screwed on op. It can cost thousands to move house. Sit tight if your sums work out!

I agree about look at your mortgage options first and trying to stay put.

I think the average cost of moving house is £10000, so staying put is probably your best option. Will you become eligible for tax credits? Will your DH's situation improve? Can your dc's help you ebay stuff?

I agree extending your mortgage looks appealing, and may lessen the pressure..

Have you looked at the money saving expert website by Martin Lewis.... there is a mortgage free etc forum.... worth looking at

How able would you be to manage if mortgage interest rates go up?

Do have a spare room to rent out? Depending where you live that could easily be another source of cash.

I would add 10 years to the mortgage and look at tax credits

Can you reorganise your home to free up a room and take in a student (if you are close to a university or college) or a Monday to Friday lodger? Could give you a little bit extra for the emergency fund.

Cross post with PitchBlackNight

Do you get a discount for council tax if you’re the only adult? Also can you take a mortgage holiday if you can’t extend term. Also worth looking at cash back sites if you’re looking to change utilities you do sound sensible and realistic I really hope it works out for you

Addng 10 years to your mortgage will bring your payments right down. You can always look at over-paying etc later on when you can afford it.

You should be able to manage, particularly as there are likely to be bits and bobs you can chip away at, utility bills and a few more evening meals of something and toast etc.

However I'd want to think very carefully before deciding that the option of moving and being mortgage free and still keeping hours low wasn't for me. Though you don't state your reasons, so it's perfectly possible that you're being reasonable in prioritising the desire to stay put over the advantages of moving to somewhere cheaper.

I’d do what you are doing too.

I’d do the things suggested - definitely extend the mortgage. I just remortgaged our place and they were happy to do it until I’m 70. I’ve taken that, but I am over paying, but it gives me wriggle room in the future if I need it. I took it with Nationwide who also allow you to stop paying until you’ve ‘used up’ your ver payments if you need to.

Then I’d check every single out going for the best deals and be very careful with other expenditure.

Plus, I’d talk to the children, explain the situation to them. They’re old enough and I think it’s far better to be open and upfront about things like this. It enables them to get on board and understand why things have changed, instead of just being resentful.

You sound very ‘sorted’, I’m sure you’ll, be fine.

I’m sorry to hear about your exdh’s health, for his own sake if he's a decent bloke, but very much so for the financial & emotional impact on you and the kids 💐

I would get over to Money Saving Expert ( Martin Lewis) and work through everything he suggests. Check everything to see if you can find better rates - particularly for the mortgage and the utilities which is obviously where your major expenditure is, but for everything you can think of - broadband etc. Make sure you’re claiming everything you’re entitled to... I’m sure there are people here or on MSE who can offer general advice. You’ll also find loads of advice about money saving without compromising quality. Eg I buy my daughters clothes on eBay which has been John Lewis / M&S etc and I sell her clothes on as well. I pick up branded school uniform secondhand from the school or on Facebook uniform selling sites. Personally I would be tempted to move if it meant no financial worry but I’m very cautious and I can see that in 10 years time you could have a great asset bought and paid for if you stayed. Give it a try and if it’s too difficult you can always move then so all is not lost.

I definitely would try to avoid selling.
Your budget certainly sounds 'do-able'.
It would leave you without holidays (dc residentials and school trips?) which I wouldn't want to do for 10 years, but you can try for a year and see how your budget works out.
Then, if you find you are struggling, can you look at other options such as re-mortgaging.

Thank you everyone for your replies and for being so supportive. That was my first post on MN, so I was a bit nervous!

General consensus seems to be to stay put, which I am finding very encouraging. There are some great ideas here.

I had kind of ruled out extending the mortgage term as it has already been extended from 25 to 30 years but I'm reconsidering that now as there seems to be a lot of support for that idea. (I'm 45 so I've hopefully still got some years to go...) The current mortgage deal is good and fixed until January.

We live near a big university, so renting out a room would be possible. However, I would be a bit nervous doing this with children in the house. Does anyone have experience of this?

I'm hoping this will be relatively temporary as I will be able to earn more as the children get older and I'm hoping ex-dh will eventually get better, although I don't suppose he will ever earn what he once did. Annie, yes, he's a very decent bloke but has suffered from horrendous mental health issues over the last few years.

Reasons for not wanting to move:

1. I want to keep the children as secure and stable as possible, especially after the hell we have been through. They have lived in the house all their lives.
2. The house and location are perfect for us.
3. If we did move, I would want to keep the children in the area so they wouldn't have to change schools/lose friends; moving within the area would mean a house that was too small really.
4. I don't have much in the way of a pension. (I studied for a long time, worked for a few years and was then a SAHM, until my husband went completely off the rails.) The house is a big part of my retirement plans (although I realise that depends on house prices remaining high).

My calculations include tax credits. I'm currently working out what I would be entitled to under universal credit - the compulsory switch in my area is July 2019.

I’m sorry to hear about his struggles. I really hope he can get to a better place, for all of your sakes.

Definitely have a look at Nationwide mortgages. I loved the idea of being about to ‘use’ and overpayments if we needed to in the future.

I’d do whatever I possibly could to stay put. Moving really would be less than ideal for you.

I wouldn’t hesitate to have a student stay, your kids aren’t little and can tell you if they’re uncomfortable. I’d try to find a balance between getting some income in and offering free rent in exchange for after school care/babysitting so you have more ability to work the hours you need to, to advance your career.

You can do this 🌷

I’m not sure anyone can work out the Universal credit 😫 All I know is that I’d spend the time between now and January increasing my income as much as I possibly could so I wasn’t counting on it, if at all possible. It’s not looking good for anyone I know (sorry).

Yorkshire BS do the same thing on being able to use overpayments for a payment holiday and for us (appreciate it will vary on your exact circumstances) they offered a better rate than Nationwide so might also be worth a look when your current deal expires.

Hope your 1st post has encouraged you to post more 😊

The great thing about students is they are term only when your kids are at school and then you can charge a % to store their stuff during hols