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Original poster

Single parent mortgage decision

12 replies

reallifesucks · 19/02/2023 12:33

Help I'm tieing myself in knots with making a decision.

Mid forties, single parent , 3 kids. We moved back in with my parents 3 years ago to save Money.

I can now get a mortgage of 280,000 and have some savings , but terrified about taking on a large mortgage by myself. The fear of future financial unstability.

I have always had a good job But always doubt myself.

We really need our own space.
Feel it's now or never because of housing market.

1 minute I feel go for it.

Another moment I get caught in all the what ifs.... and then paying a mortgage until close to retirement age...

OP posts:
Zebratan · 19/02/2023 12:39

Do you have to spend up to max borrowing to get what you need? Either way, go for it if you can afford the repayments. Worse case scenario your income drops and you can't afford the mortgage you can always sell, you'd still likely walk away with something unlike in a rental.

WyldeSwan · 19/02/2023 12:57

Yes, exactly. And unless you plan to stop with your parents forever, the choice is likely to be between paying a mortgage until close to retirement age, or paying rent way past retirement age and throughout your retirement. Don't rush into anything and done overstretch yourself. Other than that, buying is likely to be a sound move.

Original poster
reallifesucks · 19/02/2023 13:43

Thanks I need the nudge. I'm such a scardie cat making the leap.

OP posts:
LeavesOnTrees · 19/02/2023 13:47

I agree try not to go to the max on your mortgage.
Try to get a property in the best location you can afford even if it means doing some decorating your self, as it will keep its value.

It's either paying a mortgage until retirement or paying rent. At least with a mortgage you'll own it outright when you're older.

Go for it !

Pjmasksonrepeat · 19/02/2023 13:47

Can you think about back up plans? If I lose my job I know theres 6 months worth of overpayments and my lender would let me take a contribution holiday. Also I could extend the term if I needed lower payments.

If you can have a few back ups in place to take the pressure off I think it's a great idea.

Greensleevevssnotnose · 19/02/2023 13:49

Interest rates haven't been this high for years so chances are it will only get cheaper if you can get an extra bedroom for a lodger if times get tough that's an idea.

Original poster
reallifesucks · 19/02/2023 14:06

The lodger idea would only work when the kids move out , they are only 12,10,9 so a long way to go yet.

I did a see Bigger place that was within my budget (slightly dodger end of area) but was thinking the extra heat and electricity would be extortionate.

Yes - will defo ensure I have 6 months of savings for piece of mind.

OP posts:
Spotsstripes · 19/02/2023 14:09

I've had a mortgage for 18 years as a single parent I understand your worries. I'd echo what others are saying don't max yourself out, have some savings and be mindful of the bills before you buy.

Springtimesoon · 19/02/2023 14:14

I can relate OP as I'm also recently separated and have a mortgage. I would say absolutely go for it and agree with PP on not maxing yourself out. Go for the best you can afford in a good area, it's a better bet all round for you and your kids than a dream property in a dodgy area, and will be easier to sell. Don't rule out a flat or leasehold property.

hekissedmybottom · 19/02/2023 15:17

Are you on the housing list and what's the housing list like? Have you considered a council/housing association home for now?

I have one and could acquire, (buy) but just not going to bother because repairs are free and rent is very low.

Are you going to inherit any property?

itsicyhere · 19/02/2023 22:15

Single parent here with mortgage a bit higher than you're looking at. I got one that allows you to make overpayments that reduce term/interest but also sit in a separate 'pot' so if you need to reduce payments/take a payment holiday then it doesn't affect your credit rating or the mortgage. In the first couple of years of the mortgage I focussed on building up the overpayment balance so that I have c8 months now of payments so if I was to lose my job I know the mortgage would be paid. It has the added benefit of reducing overall interest paid.

It is scary at times, especially now with the COL crisis but no more so than worry about paying rent instead if mortgage/other bills etc.

I would say go for it - knowing that I have long term security and a home for the children is v important

Aphrathestorm · 19/02/2023 22:41

You won't be paying a mortgage until you retire.

In 10 years time you can downsize and maybe be mortgage free.

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