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.

@ThatMortgageDilemma

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.

So you actually want to move to a less desirable area? Has that always been your goal when your DC left home?

Leave him be. He'll be fine with his student loan and part-time job/jobs, just like most other students are.

Besides, it's a lot of pressure on him as he may decide Uni isn't for him and he wants to drop out.

If he csnt afford london then he picks a uninthats not in london. Stupid to sell your house to fund him

@ThatMortgageDilemma

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.

Ds1 has applied to study history - every teacher he has spoken to has told him not to get a pt job - he won't have time! So I agree with you, depending on course being studied.

I think it sounds sensible to move to a smaller and more manageable house. I would hate to live alone in a large house. Keep the money you save aside for a rainy day. Let your DS know that if he's in trouble, you are there to help him.

You don't necessarily need to move to a less desirable area though if you don't want to. Just a smaller house should save you some money, both in terms of smaller/no mortgage and smaller bills.

Aside from your DS, you want to downsize?

And have you thought about taking on a lodger/Air bnb to help pay the mortgage/support your DS?

1. Do you want to move?
2. What sort of property do you see yourself in long term (post retirement)
3. 3 years interest free on the mortgage would be my choice

Good luck!

It sound like you want to move anyway, so maybe go for it!

Please don't sell or re-mortgage your home. You don't even know if he will stay at uni.

So you actually want to move to a less desirable area? Has that always been your goal when your DC left home?

Oh yes, the dream of my life. In fact I am in the less desirable area now, before I had a villa by the Mediterranean and yacht in the nautical club.

It surely doesn't make sense for you to take an expensive finance option (mortgage) rather than him get an interest free overdraft if available?

Also, if you no longer have him to support, can't that monthly amount be diverted to support him?

I don't understand what you're saying tbh, many students manage with a full maintenance loan + job. The issue is students with e.g. half maintenance loan awarded but their parents don't top up.

I always thought I could rent 2-3 rooms to lodgers when DS left. I don't think I like the idea of having people around now that I'm working from home and my employer seems to be perfectly happy to keep us at home indefinitely.

But I may change my mind if I feel like the house is too silent once DS leaves.

I would sell the house, simply because it's too big for you anyway. At least you'll have the money as back up but he should manage.

mortgage

I would not sell the house, at least not for the first year. Leaving home for uni is a massive change for teenagers, and having the stability of a family home still being there can be a big help. He might feel very guilty if you sold to help him, wherever you buy is unlikely to feel home to him.

He is choosing to go to London, you should trust that he can cope.

Take a year to assess what you want for the future and let him settle into uni before you make any big decisions.

You sound like a very caring mother.

My parents helped me through Uni, I really appreciated it and still do. It was 10 years ago and not in London, working part time was OK but it didn't leave me with much £ left over after rent and other expenses.

In your position I would get a female lodger for 6months while I think over the moving idea. And potentially put the house on the market. It's a big decision. I'd use the lodgers rent to assist DS for the time being.

congratulations on your son going to uni. (..when ds1 i swear it broke my heart and made it soar with pride/which was weird feels)
is renting his room out an option?//add on income?

You could take in a lodger or two and use that money to support your son/save for rainy day.

I would think about where you want to be in 5 years. When your DS has left uni and is working (in London or elsewhere). What would be your dream balance? And work out how you can keep a cash buffer to help your son out if he needs it (plus maybe a small monthly allowance now) while achieving that aim. So if remortgaging and doing some work will allow a quick and painless sale in 2 years plus a bit of a cash buffer then that might be a really good use of the time and empty nest. And do you really need to move to the undesirable area? What about a smaller property near where you are?

Keep the house, get a lodger if you think you need the extra cash, if the house is big then you’ve got plenty of space and you might enjoy the company so your not thrown into empty nest syndrome.
Then honestly, I’d go wild, throw raving swingers parties at the weekend and live it up, you’ve worked hard, raised your son on your own, now it’s your time to enjoy a bit of freedom!

You say you love the house op, so I wouldn’t sell it. I agree with people that this should be ds solution to figure out. Remortgaging your house for uni fees sounds insane, what if he drops out? How is everyone else at the uni coping if he can’t?

@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

Some students have a 40 hour a week course (my DS did) so were advised that if they could manage without a job, then it would be in their interest to do so. A part-time job is not the solution to everything.

He should be able to manage or he does what others do and gets a kart time job as well

I'd look for a lodger or some adhoc work to increase my income. You need to think of your financial security.

No don't sell your house . That would be crazy. He is an adult. Let him sort it himself as other uni students do. It would be awful if he dropped out after losing interest .

I think you need to take your DS out of the equation. What would you do if you didn't need to help him?

Then work out if he is going to need your financial support. If he gets the full loan and the full bursary at one of the wealthier universities (up to £5k), he won't need to work or need support. Even with no bursary, it's doable on the full loan and with a summer vacation job. If he does need your support, then go for the closest option to your ideal option.

What are the penalties for ending the mortgage deal early? It may be tiny in comparison to the cost of making an expensive mistake and rushing into selling up if you are unhappy with the move. Can you port it to another property if you sell and buy 2 properties? Do you need to make this decision now? How much more will it cost you if you don't renegotiate now and go on to the standard rate for a few months until you know where you DS is studying and how much he will need?

TBH the first year isn't too bad when they are in halls (with term time rent only and no bills) and there are no travel costs if they are near the campus. It gets more difficult financially when they need deposits, rent guarantors or guarantor insurance or to pay several month's rent up front in lieu. They have to pay at least one month's rent up front with the deposit before the student loan payment, then £30 for a weekly travelcard... BUT most universities offer hardship loans to help with things like deposits for students who have no way to pay until they get their loan. My point is, you have some breathing space to make a decision.