Should I sell my house to support DS at Uni and get rid of the mortgage?

[ThatMortgageDilemma]

I am a single mother, my child is going to university this Autumn. Given my salary, I know he will get the full student maintenance loan and extra bursaries but... having worked in the area of Student Finance and looking at the price of rentals in the cities he is likely to move to, I know that won't cover all the expenses even if he gets a part time job.

My mortgage deal is coming to an end so I am dithering between getting another mortgage or selling the house, pay the mortgage and move, mortgage free, to a smaller house. All these options could reduce my monthly expenses so I can support DS while he is at uni.

I am not married to the idea of staying in this area for the foreseeable (I think...). I love the house, it is a very desirable area in walking distance to parks, cafes, restaurants, great schools that I no longer need and the train station. My mortgage payments are relatively small, less than what I would pay for a room in a shared house, but it is a big period house, too big for me and expensive to maintain.

In my circumstances, what would you do?

1. Sell the house, pay the mortgage and buy a smaller house mortgage free in a less desirable area

2. Re mortgage the house for 3 years with an interest only deal while DS is at uni, then go back into a repayment mortgage at the end of the period or go by point 1.

3. Remortgage interest free for 3 years, ask for an extra £10000, change bathroom, boiler and do some repairs which will reduce the expenses the house causes me every year so the money can be used to support DS. Then sell for a higher profit when the mortgage deal comes to an end or go as by point 1.

4. Get another Repayment mortgage deal for 3 years which will reduce the mortgage payments by 15%. Then decide what to do close to the end of term. This obviously doesn't help much to support DS while he is at uni.

Unless he moves to London, your DS should be able to manage on the full student loan plus burseries.

But that wasn't your question!

I'd choose 2) and re-evaluate whether to sell after 3 years.

He should be able to manage, lots of others do? I mean, few will get more than him and some will get less. I think you have to think about what you want long term. Take the mortgage holiday /interest only option perhaps. We will be topping dd up to the 9,250 or whatever the full maintenance loan is, which will cost us £5000 a year. And her sister a year later. We certainly can't give her more and she will have to live on that plus working. I've looked at costs, even if she goes to London, and it's doable.

They do get more loan for London

Option five. Tell him to do what millions of other kids do and get a part time job to make up any short fall.

It is London where he is likely to move to but, equal consideration is given to the fact that I do not need such a big house. the smaller house I would get would have space for him anyway.

If he’s choosing to go to
Uni and move away that’s his problem. His loan and a job should see him through. What happens if he drops out? You’ve sacrificed your home for nothing. If remortgage and potential release some equity to do up the home and stay put. In 3 years he’ll be free of uni but you’d be without your home. Or if your mortgage is cheap now then just remortgage and put up with it. He needs to help
Himself here

He will manage he just needs to budget

People, it is not only about supporting DS, it's to decide what works better for me as well now that I am graduating from having a son at home 24/7.

Keep the house. It will be much more of a longterm investment for him than you contributing to his education. I think now is a good time for him to learn how to manage in the adult world. Could you take in a lodger to help contribute to your expenses and thus allow you to help him if he needs it? Or he needs to think about how to cut his costs? Or go part-time to uni and work full-time? (This is what I did) Most uni housing now is a nicer standard than where I live as a 40 year old with a higher than average household income. It's new and fancy flats with en suites and yoga rooms and a gym (I work for a uni). Back in the day, it was 5 packed in a 3 br house sharing 1 bathroom. I think it's a good lesson in learning how to make it in the real world. If you really need to and you don't have smaller children, I'd consider getting a second job (or better one?) to help, but I'd keep your house as an investment.

It seems like there is the option to borrow more for the home improvements, could you stretch that amount so you have a buffer to help DS with? Maybe stretch the mortgage term? I’d not want to move when you like the area, if you make your home more efficient and desirable with improvements you might be able to sell quickly and so could act if the right downsize type property came up in your area. Most mortgages are portable I believe so you could move whenever. Does DS want to still come home from uni to this house do you think?!

Do you want to move? / move away from the area you are in / to a lesser area?

Can you afford the house you are in going forward - ignoring the uni issue?

If you like the house/area and can afford it longer term then I wouldn't jeopardise that for DS uni. Nor should he expect you to. Have you spoken to him about how he will manage?

It's about more than just money. What's your relationship with your son like? What sort of person is he? There is a possibility that he could start to become entitled, that Mum will bail him out whatever he does. I'm not saying he would, because I don't know you or him, but it's something to think about.

To a lot of students the experience of being at uni teaches them just as much about life as their course teaches them about their subject. If he has to get a p/t job and juggle work and study, that will give him an advantage in future job interviews because he'll be able to give real world examples of problem solving, prioritising etc.

You don't know what the future holds, so you have to do what feels right for you and him now. But I wouldn't fall over myself to make it too easy for him. Please consider every aspect of this decision, not just the financials.

I think your best option would be to head over to the Higher Education board and specifically ask about budgets at the universities he has applied to and look at the university websites to see if they have suggested budgets/costs. My DC's university publishes a suggested budget based on a survey of their students, so actual costs.

DS is the kind of guy who is not expecting ANYTHING from me, he has been working for ages but...I think I was left traumatised after being a student finance officer for years. I want to have some safety net in case things go wrong, I have seen so many students going into hardship and many through no fault of their own.

Which uni in London, if you don't mind saying? Some of them have very generous bursaries.

And yes I have checked his entitlement to bursaries and scholarships for all the universities he is applying to.

Part time jobs can be a false solution if they impact on his grades.

I also don’t agree with the view that it’s his problem.

I hope you find a solution OP.

Would you consider renting one of your rooms out and using the money from that to fund your ds's shortfall? It makes financial sense in the long term to stick with the property that will appreciate the most.

I would seriously think about a downsize ...just because you don't need or want the maintenance of a big house...
But pick a downsize that you want...think of your longer term needs..so a location you like , size etc..your sons uni funding is separate and secondary..

If you have a bit of extra cash to sub him..Great but I wouldn't redo my living/mortgage because of that..
We are thinking simarly as have only really stayed in this house due schools...and have an idea of where to move to

What area do you live in - could you make money from your current house - host international students, air Bnb to give a bit of extra income

Part time jobs can be a false solution if they impact on his grades.

Totally agree with you, especially if in a demanding course. Having said that, I don't think I can do anything to stop him from working if he wants to and he does.

@Ivy48

If he’s choosing to go to Uni and move away that’s his problem. His loan and a job should see him through. What happens if he drops out? You’ve sacrificed your home for nothing. If remortgage and potential release some equity to do up the home and stay put. In 3 years he’ll be free of uni but you’d be without your home. Or if your mortgage is cheap now then just remortgage and put up with it. He needs to help Himself here

Does he have to go to uni in London? I'm not trying to be mean but plenty of people have to make the decision to go to uni elsewhere as it's not financially viable. There are loads of excellent universities in other, cheaper locations. I know lots of people who factored in cost of living when considering where to apply to uni, it's not unusual at all, it's totally reasonable.

Have you actually looked into whether you can get an interest only mortgage?

Lenders have massively tightened up on them and will usually only lend if there is evidence of how the capital portion of the loan will be repaid - and ‘I’m going to sell in a few years’ won’t cut it.

Regardless, I would go for option 4

Can you afford the house you are in going forward - ignoring the uni issue?

That's the ridiculous thing about this situation, I have a small salary, a small mortage payment and a stupid amount of money locked in a house that is too big for me.

If I ignore the uni issue and move from this area I can get a nice small house for me and another one to rent.