To think my daughter is taking a crazy financial risk?

[daufhtercrusus]

Unfortunately my daughter has separated from her partner with a 2 year old. She saved to buy the house they both lived in and both paid half the mortgage after they got together. He is not making any claim on the house as it was a short lived relationship which is fortunate in the circumstances. He has however said he wants not part in my granddaughter’s life which has left my daughter deciding to go part time to four days a week which will obviously reduce her income drastically. I know she will be able to claim maintenance but we don’t know what that looks like and I wouldn’t like her to rely on that. Me and DH both think she now needs to move to find somewhere with lesser mortgage payments, daughter is saying 1,100 for a four bed house is a good deal and it would be pointless moving now. She’s never told us her finances before but I am shocked she is now left paying this, surely this is far too much to pay especially as a single parent? Am I unreasonable to encourage her to downsize and get somewhere which much lesser payments? Her current rate is fixed until 2027 but it is portable. I am very worried for her.

She will get. A lot of benefits and likely be better off than befor

Her house sounds like a bargain.

We lived in a very cheap part of the country, currently looking for my daughter, monthly payment on a 2 bed bungalow are around £1100 over 30 years at current rates....

Can people stop spinning this rubbish.
She will have next to no benefit entitlement due to owning her home and earning 40k. She will be able to claim for most of her childcare bill and that’s largely it.

All of her childcare cost is a pretty big benefit in my opinion!

Absolute nonsense

I own my home.
I am a single parent
I work part time pro rate £46000 (so £28,000)
I have two school aged children.

I receive more than £500 in universal credits. I have NO childcare costs

That’s really odd because 4 years ago I didn’t even get £500, earning £25k with 2 kids and childcare.

I just about got childcare covered which was about £400 pm

I thinks she’s of the children impact it? Maybe?

I also think people are assuming (rightly or wrongly) that the 40k is the pro rata wage. Op actually has no idea what her daughter earns it could be more could be less.

This is weird. Her mortgage is fixed until 2027 is she probably has a decent rate. She’ll most likely weather the current shit show that’s going on. Moving has costs, plus the fact over the last few years House prices have risen by a crazy amount (yes there’s been a slump but atm it’s less than 5%), so likely she wouldn’t be able to get a 3 bed for what she got her 4 bed for (certainly the case for me). And even if she did the cost of borrowing is higher so she may even be paying more than £1100 due to a 6% interest rate.

Double room in house in Hove (bills inc)
No asset, no equity, 1 room not 4

£650

Go on a benefit calculator

input your details from a couple of years ago

you will see what you’re entitled to

I mean 4 years ago

I don’t need to. I know what I got

You didn’t get what you were entitled ro

or at least not based on current calculator

Ffs she did, 350 allowance for her £300 per child she can earn £950 without loosing a penny then looses 45p in each pound up to £2000 per month.

£1,100 a month seems quite cheap to me. You sound very out of touch. A rented room in a shared house can be £1,000 where I live.

It sounds more like you’re interfering and causing her more stress after this huge upheaval in her life. She’s an adult and doesn’t need your unasked for opinions, and they will only cause her more upset. Just stay out of it?

This!

You sound far too involved. Expecting her to 'inform you' how much she pays for her mortgage and to be able to tell her it's too much. She's an adult.

That mortgage payment seems cheap to me. It would be the childcare payments that could be tough. But it’s a massive upheaval to move, rent would cost move and if she buys a smaller place she’ll have all the costs of moving which could be £20k.

That’s cheap for a 4 bed house and she’s locked it until 2027 which is good. She sounds pretty well sorted. She could always take in a lodger if desperate .

With all due respect you are in cuckoo land.

She earns 40k ish which means she will take home around £2400 ish plus maintenance -and plus child benefit of £80 a month. Do you think she’d be better off and paying someone else’s mortgage? Does she have a nicer house than you and therefore are jealous (tones of my mother here)?

We had a newborn baby last year and we all just put extra layers on and have thick quilts for the older children and a winter merino wool winter sleeping bag for the baby.

Give her some credit and trust her - perhaps you could help by taking the baby once a week to save her money on childcare.

OP you won't need to bail her out - she has a valuable asset and the ability to downsize if she wants to make her life more affordable.

Stop worrying about something that's nothing to do with you, and isn't actually even a real problem.

You’d die in a panic at my mortgage repayments, then. Do you live somewhere extremely inexpensive?

Your husband sounds seriously out of touch if he’s thinking anything above £500 for a mortgage is excessive op. Realistically she would be likely to lose a fair amount of money were she to sell and move just now. I think she should be ok if she’s careful, and makes use of any benefits/cm money. You both need to start supporting her (I don’t mean financially) in her perfectly reasonable decisions, rather than adding to her worries with all your negativity. she will likely stop telling you any of her business in future op if all you do is add extra stress and negativity to the situation.

Oh, and try to remember that she’s an adult op, she’s not your little girl to tell what to do any more. The idea you think you should have had any say in how large a mortgage she took out is ludicrous. The bank judged her on her ability to pay it, so they were clearly happy she was good for it then, as a single earner.

They just bought at a time when mortgages were more affordable. Lucky bloody them. My parents' mortgage was £250 a month before they finally paid it off 10 years ago. They were horrified that mine was over 1k... but the house cost 150k more than theirs when they bought it, for a smaller house in a worse area.

If only we could all go back to the 90s to buy our houses 😂

£1100 for a 4 bed in London feels reasonable and I think you really ought to look at what sort of property your daughter would have for £500 in London.

I honestly think you are in cloud cuckoo and not grounded enough in the real world to be advising your daughter on things which you dont understand.

Listen. That's your job here. Dont offer advice unless she specifically asks you to.

If you think a mortgage should be under £500 I would suggest that perhaps you no longer have one and financial support from you would be be better than your wisdom.

If you can afford to help her for a whole, why wouldn't you? Whilst I am one of the posters who intends to charge my kid rent, I would also bend over backwards to take the pressure off after their relationship ends. If you have the money , why wouldnt you want to? Housing a child and grandchild must be a top priority, surely? She doesnt sound like the sort to ask it the sort to want you to pay forever.

£1100 for a 4 bed in London feels reasonable

understatement of the century