Would you borrow max mortgage - as a single parent?

[NewChapter22]

I know this question was asked before, but would you borrow the max you could in a single income if you're a single parent? Recently divorced with 2 kids. I am lucky in that I have a good job that would allow me to buy something decent for my kids but I just feel uncomfortable maxing my borrowing capacity on a single income. Any thoughts? What would you do?

I think it depends how secure your job is. If it’s a profession without redundancies looking likely — or if you’re going to be employable if you lose your job — then definitely. If your job isn’t so secure, then I wouldn’t max out.

I am in this position and I did not borrow the max as I am too worried about other variables apart from losing my job. My job is pretty secure (I think) but I just worry about bills etc and I would also like to have holidays, occasional treats and things without worrying too much. Plus uni is coming up for the oldest very soon and it won't be that long for the youngest either.

No because the interest rate has risen and will probably rise again and the energy bill hike will affect most people. Taking out the max will put you at risk of losing your home all other bills rise together.

OP, I have. I had no choice as it was the cheapest rung for the size we needed in a more expensive area. I relocated for my job/career.

It's worked out. I am very aware I am at the maximum though. I'm desperate to do the house up and struggling tbh. 4 years in and slowly getting things done.

We ARE settled though. We are happy. I'd do it again.

Well what would be the difference in quality of housing if you bought something smaller? Is it going from 2 seating areas to 1 or more like one bedroom each to sharing? Make your mortgage smaller if possible imho.

The max they will let you borrow? Or the max you can afford? Can be quite different things.

Work out what's right for you, take a little off to give a bit extra breathing room and go for that.

@EdHelpPls

The max they will let you borrow? Or the max you can afford? Can be quite different things.

Work out what's right for you, take a little off to give a bit extra breathing room and go for that.

That's a really good point. Far better managing something less fancy more easily. My house isn't flash by any standard but each montj i overpay my mortgage. Even by just a tenner or so. It will all add up.

I did. I borrowed 80k which was the most they would lend, 5x my income, over 30 years. What I did have was a good deposit from the sale of the old house, and ability to go full time within 6m of my mortgage starting. The mortgage payment was half of the rent I paid inbetween.

8 years later and I've overpaid sufficiently (only £50 here and there) to reduce the term by 5 years, the monthly payment is roughly the same.

My house value has increased by nearly 60% in 8 years; there is much to be said for purchasing rather than renting. We've had cheap holidays, I budget HARD and there have been some tough times. I'm at the point where tax credits and maintenance reductions are looming but I can always extend the term, not make overpayments or frankly downsize as the kids fly the nest.

@Fuuuuuckit

I did. I borrowed 80k which was the most they would lend, 5x my income, over 30 years. What I did have was a good deposit from the sale of the old house, and ability to go full time within 6m of my mortgage starting. The mortgage payment was half of the rent I paid inbetween.

8 years later and I've overpaid sufficiently (only £50 here and there) to reduce the term by 5 years, the monthly payment is roughly the same.

My house value has increased by nearly 60% in 8 years; there is much to be said for purchasing rather than renting. We've had cheap holidays, I budget HARD and there have been some tough times. I'm at the point where tax credits and maintenance reductions are looming but I can always extend the term, not make overpayments or frankly downsize as the kids fly the nest.

This sounds like me except I'm not as far along the road as you. Don't know if this helps but I phoned the bank and after an hour and a half I had a better deal which reduced the length of my mortgage for very little cost.

No.
Are you able to afford a house without maxing your capacity?

I havent a good job, and after my divorce could only afford a flat but I would have bought a house if it had been possible but not to the point where it left no room for emergencies or price hikes with a mortgage which would put me in difficulties.

I'm currently buying a house using the maximum mortgage the bank will give me. Repayments will be 23% of my mortgage, which sounds low, but the mortgage will be huge! I figure me and my Dc need somewhere decent to live, so might as well stretch while I can. I'm in a very stable job and a high earner, so I am also planning to make overpayments each year (can be up to 10% of outstanding mortgage).

*Repayments will be 23% of my take-home salary

Don't do it. Interest rates will shoot up in the next few years.

I always have borrowed the maximum and it has worked well for me over the years in climbing the property ladder. But I think it depends partly on your situation. I was lucky knowing that if ever I was really struggling to pay the mortgage, my Dad would be able to help me out with a loan. So I guess it depends if you have any family back up if things did go wrong

It really depends. I didn't. But then I could get a decent home for me and the kids without borrowing the max. My income went up significantly after so I over pay instead.

The house is worth 40% more than I paid for it and I have reduced the term by 6 years.

Although tbf, I am thinking of moving.

I wouldn't but we are northern and the maximum we could borrow bought us a house to big to manage. If your down south so need to for a decent house I would say go for it but be prepared to not have holidays etc

Thanks for the replies. I am in the south east, so in order to buy something decent/not need of significant work I will need to max out! Something I am not comfortable doing as this will be my first house purchase alone. My other options is to find a project that will give me the space I need and do it up slowly...but not many of these are coming into the market atm.

I got somewhere at the bottom of the market that needed work - although I probably would not have been able to afford much more than that anyway. I slowly did it up over 4 years and sold for a great profit. It wasn't very comfortable living there but worth it in the end. I could have afforded somewhere nice alone after that - (moved in with DP now).

So maybe think a bit more short term - even if you are maxed out, could you find somewhere to build profit on and then put that into the next place where your mortgage is more comfortable?

@NewChapter22

Thanks for the replies. I am in the south east, so in order to buy something decent/not need of significant work I will need to max out! Something I am not comfortable doing as this will be my first house purchase alone. My other options is to find a project that will give me the space I need and do it up slowly...but not many of these are coming into the market atm.

*@NewChapter22* would you consider auction properties? More likely to find project but they cost more in the long run after renovations been factored in. Materials and builders are more expensive than before so buying a ready done property might cost less in the long term.

It's a difficult one. I am happy to take on a project but not something too distributive as both my boys on the autism spectrum! The other option is to expand my search area and drive them to and back to school everyday... again not ideal but perhaps needed!