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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To want to get rid of mortgage

29 replies

DollarDilemna · 30/03/2025 17:05

WWYD

We are struggling to cover bills. I work part time with two young children, DH works full time having started his own company.

I’ve recently received inheritance. I want to downsize and get rid of our mortgage, bills would be the same but closer to work and school.

DH wants to use the inheritance to pay the mortgage for a few years but stay where we are.

WWYD?

OP posts:
Aposterhasnoname · 30/03/2025 17:07

Not sure I’d downsize with young kids. You’ll want more room as they grow up, not less.

Tiswa · 30/03/2025 17:07

So what is the financial impact of downsizing in terms of fees etc and what is the loss of space

how much mortgage can you pay off and what would that do to your monthly payments?

Upstartled · 30/03/2025 17:10

I guess it depends on the amount of everything. It's expensive and disruptive to move so if this is a desperate situation and you can use the inheritance as an opportunity to get out of dodge, I might use it to downsize.

If it isn't desperate, rather just annoying, then I'd make the inheritance work harder by taking the whole amount off the capital.

I wouldn't use it as your DH suggests though, to pay the monthly mortgage costs simply to create a temporary illusion of having more money than you do. That lifestyle inflation is a fucker.

CaveMum · 30/03/2025 17:13

Can you earn more in interest than you are paying as your interest rate on the mortgage? If yes then I’d put the inheritance away to earn said interest then review the situation when your current mortgage deal comes to an end.

Upstartled · 30/03/2025 17:17

Actually, that's a good point. Also, if there's any chance you and your DH are on the rocks you can keep it out of the family pot and retain it as your own, rather than a shared asset. (I think) In which case I'd keep it separate.

Moonnstars · 30/03/2025 17:19

Depends on how big your current house is and what you mean by downsizing. If you have a spare bedroom so could go down to 3 bedroom instead of 4 then yes, I would consider this. However if it's a case of moving to children sharing a room/no garden or something like that then no I wouldn't downsize.

vivainsomnia · 30/03/2025 17:25

Will you be able to go FT when the children are at school?

Mydadsbirthday · 30/03/2025 17:27

Do not do what your DH is suggesting because in a few years you'll just be back where you are unless you've overpaid your mortgage or unless one or both of you are earning more.

Barleysugar86 · 30/03/2025 17:29

I would avoid moving unless desperate- you lose money in fees anyway. Overpaying mortgage is always a great thing to do, pay in chunks though so you don't get the penalties for doing too much in a year. Keep some in a savings account for emergencies.

Screwyoutwat · 30/03/2025 17:44

Depends on the size of your house now and what you would be downsizing too surely?

NewsdeskJC · 30/03/2025 17:49

Can't you just stay where you are and pay a lump sum off the mortgage?

2ndtimefinances · 30/03/2025 17:49

Realistically how much would it cost to downsize, moving costs, mortgage fees, stamp duty, solicitors? Unless a significant sum would be realised it might actually be a false economy.
Instead look at your interest rates mortgage, savings, investments & pension & work out the most cost effective plan.
I wouldn't suggest using the money to make the monthly mortgage payments though, as what would do when it's gone & you have to find that money on a monthly basis again?
Your ages & the amount will also affect things
Edited: spelling mistake

Mandylovescandy · 30/03/2025 17:53

How much do you owe and what is the new house option like? We have kids and 'downsized' - actually the house isn't much smaller just not so sought after style and location but works great for us and I love having hardly any mortgage left

Meadowfinch · 30/03/2025 17:55

I'd pay a chunk off your mortgage now. It reduces your debt, reduces your monthly mortgage payments and keeps your larger house, which you will need in the future. 6'3" teenagers take up a huge amount of space as I am finding out.

Mortgage rates are meant to fall later this year so things should ease up naturally too. I hope!

80smonster · 30/03/2025 18:03

You haven’t given much context OP, if you currently live in a 8 bed / 4 bath and are struggling with the bills, it would make sense to find a 4 bed / 2 bath. However if you’re suggesting downsizing from a house to a flat, with a young family, that sounds like a recipe for disaster.

Notsuchafattynow · 30/03/2025 18:06

NewsdeskJC · 30/03/2025 17:49

Can't you just stay where you are and pay a lump sum off the mortgage?

Yes, this. A third option. this is better.

ToKittyornottoKitty · 30/03/2025 18:08

How big is your current house? Have you got rooms spare? Would all kids still have their own room if you downsized?

notapizzaeater · 30/03/2025 18:30

Before id do anything id want to make sure your DH business is solvent - what if he doesn’t make money - have you a plan B ? Its a lot on his shoulders if you’re not working
.

Original poster
DollarDilemna · 30/03/2025 20:17

Current house is large, valued at £800k. We’d have a £500k budget to move with and have no mortgage at all. The houses I’ve seen are smaller but we’d still have a two reception rooms, bedroom each and an average size garden.

we carnt pay lump off the mortgage coz there’s a penalty fee. Mortgage is up for renewal this year.

money is tight enough that we spend more than we earn most months

DH struggling not to be self employed as he helps care for an elderly relative. I cannot take on more hours due to childcare

OP posts:
Tiswa · 30/03/2025 20:18

in those circumstances actually I would downsize

CaptainHammer · 30/03/2025 20:22

Reading your second post I’d definitely downsize as it sounds the most sensible option

Leafy74 · 30/03/2025 20:27

Upstartled · 30/03/2025 17:17

Actually, that's a good point. Also, if there's any chance you and your DH are on the rocks you can keep it out of the family pot and retain it as your own, rather than a shared asset. (I think) In which case I'd keep it separate.

Edited

If a man tried to do this...

WhistPie · 30/03/2025 20:30

You can pay a lump sum off your mortgage as soon as your current deal runs out, usually when your mortgage deal has 1 month left.

If you really want to, that is.

BlinkFifteen · 30/03/2025 20:35

You could therefore pay a lump sum off the mortgage when it is due for renewal as you just renew for less. You could look into that now, look up mortgage best buys (somewhere like London and Country) run the figures through a mortgage calculator for your monthly payments (MoneySavingExpert has them) and in all honesty if this was me I would be looking at keeping the term the same to keep your costs down. You can always overpay in the future if you are able. But run the figures through the calculators.

Do not underestimate the stress involved in buying and selling a house. You only have to be on the Property/DIY board to see about chains, surveys, asbestos in the roof, etc and all the fees you will pay. It is still considered one of the most stressful events you will go through. You would need to sort your house ready for sale, finish any unfinished jobs. You would have to put up with people viewing your property and then finding a house you and your Dh both like too. It is not an easy process.

Children become adult sized around 12/13 years old so imagine your current house with 4 adults in it. Is it too big? Ds1 is almost 22, he went to uni and started a graduate job here when he graduated. He will be here for at least 3 years to save up money for a house deposit. We made sure this house would grow with us to accommodate that sort of thing. Ds2 is in his first year at uni and we expect he will do the same.

Upstartled · 30/03/2025 20:45

Leafy74 · 30/03/2025 20:27

If a man tried to do this...

Show quote history

🤷🏼‍♀️ plenty of women have a fuck off fund on mn, acknowledging the financial precariousness that comes when your economic power is clipped by dint of also being the default primary carer with young children. It's not something that I have ever needed but you never know which posters might need, or not realise, they can potentially ring fence and inheritance for themselves.