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

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.

Also a single parent with a DD going off to Uni in 2022. It’s unlikely she’ll be able to get a part-time job due to placements she will have to do as part of her degree.

I’m currently looking into this as an option for me. Just to add interest free mortgages are currently extremely rare though.

Buy a smaller modern house in the same area you currently live. Go detached if you can. Your DS can get a part time job

I’ve gone from old house with tons of upkeep to a low maintenance new house and the difference is crazy! My life is much simpler and the house less of a money pit.

Only move for a house you really love

I fully intend to downsize when the kids move out. I see far too many older people rattling around in big houses they don’t or can’t look after. Paying huge heating bills for nothing.

We have 4 bedrooms and could rent them out, but I have no desire to have more people around.

I’d be happy in a two bed cottage with a nice view and easy transport links.

Some people just aren’t attached to their big houses like others.

I’d downsize, with room for him to come home if necessary.

You have to think about your own financial future, and especially about retirement. Do you have a pension?

If you blow some of the equity in your house on keeping your son at university then you are potentially putting yourself in a difficult position in your retirement.

The two houses for one idea is probably the best for long term security for YOU.

Personally I would not want to move to a less desirable area. Won't that make you miserable?

Go to see a mortgage broker ant talk.it through with them. As an example, I recently borrowed an extra £25k on my mortgage and pay £200 a month less.

I also wouldn't move onto an interest only mortgage though.

I'd usually say selling to fund your kids is crazy, but that's not your sole reasoning at all and - reading your situation- I'd downsize BUT only if you can find a smaller place you feel equally in love with. How about a tiny but characterful cottage if you like period features?

Just another little thought though- how often will DS be coming back? Do you still need to allow sufficient room for that?

Going against the grain here, I would go for option 1. You will be mortgage free (great!!) and be able to support your DS if needed. Also, you have no idea whether DS will stick with his uni choice and graduate, how your own life is going to go over the next three years (you might meet a new partner, for example) and how the housing market will change going forward.

Keep yourself as un-encumbered as possible so you can make changes should you need to.

It doesn't sound like you are quite ready but good to start planning . You don't know yet how your son will get on financially, he might be ok on his loans and maybe job in the summer holidays to build up a buffer.
I love the idea of you having your own adventure, but you need to see how flexible you can be over work so again you can't answer that just now.
A 2 Bed garden flat in a lovely cosmopolitan area sounds fantastic, maybe would free up some money to travel too

Your son sounds lovely OP and I am envious of your future - I'd definitely free up my resources by selling up, going mortgage free by buying a 2 bed house (with a garden, even a small one - for me that's a must) so your son has a home when he comes back from uni. The extra available income will allow you to travel more, but with the security of a paid up home to come back to.

OP I am in pretty much the same situation. My kids have peeled off to uni over the last few years. The final one leaves this year. I got lodgers, overseas students, last year (pre-covid). I will probably do the same from September, as I transition. But... it's a mixed bag having other people in the house. On the one hand I'm now working from home too, so it may help re isolation and structure. I will probably sell and downsize next year - become mortgage free :) I'd like to take the time to get the house improved a bit. Settle into my new single life etc. Like you I travelled and moved a lot pre kids. I always loved changed. But I have lost the habit and ease of it! It's been heartening reading your posts and those of other PPs in our position.

@ThatMortgageDilemma @sessell yes to all of the people in our dilemma it’s a fabulous place to be ♥️