SLLM (Single Lady Large Mortgage)

frankersBri

Hey @LadyWithAPlan - good luck on your journey!

I would say, don't look at the big number on the mortgage. Honestly, if you are comfortable with your decision that you want the stability of working towards owning your own home, then the number doesn't matter, it's the affordability that does. 

I bought my friend out of our joint purchase last year, with the mortgage I took out (for remortgage and to buy her out) being larger than the price we originally bought the house for! It was terrifying. Combining that with mortgage payments that were almost double what I was previously paying etc it was nerve wracking.

But, I was sure this was something I wanted to do. I wanted to own my own home. I was willing to make the financial sacrifices and commitments needed. So I budgeted and mapped out what was possible. I took a mortgage with a slightly longer term (and therefore lower monthly payment), as I am able to make over-payments each year (up to 10% of the mortgage) which I do regularly. But if I needed more flexibility, I could cancel the OP's and pay a lower mortgage payment. For me my big sacrifices have and will be significantly reduced travel, weekends away, sports/gigs, takeaways. For me, it was worth it for a few years. 

It sounds really tricky for you - working out the sacrifices you are willing to make is hard. A larger property = more debt = more income required to maintain a standard of living

If yo uare willing to make certain compromises on your standard of living, that would help. But could you also be flexible. You say you have 3 days a week on one contract. Could you do 1 or 2 days a week for other projects on a less regular basis? E.g. aim to work 4 months of the year full time, 8 months 3 days a week? 

I hope you find something that works, so you can follow what you want in all parts of your life!

badmemory

We have all had that moment when we are saying to ourselves what have I done.  My first solo mortgage was 45 years ago.  My second really quite small mortgage was 30 years ago, thanks to moving from down there to up here.  I still had that OMG moment.  And my father still came with me in case he had to act as guarantor again.  But that moment when the roof over your head is totally yours makes it all worthwhile.  It is just that it is all down to you that is worrying.  But you are showing that you can do this.

LadyWithAPlan

frankersBri said:

Hey @LadyWithAPlan - good luck on your journey!

I would say, don't look at the big number on the mortgage. Honestly, if you are comfortable with your decision that you want the stability of working towards owning your own home, then the number doesn't matter, it's the affordability that does. 

I bought my friend out of our joint purchase last year, with the mortgage I took out (for remortgage and to buy her out) being larger than the price we originally bought the house for! It was terrifying. Combining that with mortgage payments that were almost double what I was previously paying etc it was nerve wracking.

But, I was sure this was something I wanted to do. I wanted to own my own home. I was willing to make the financial sacrifices and commitments needed. So I budgeted and mapped out what was possible. I took a mortgage with a slightly longer term (and therefore lower monthly payment), as I am able to make over-payments each year (up to 10% of the mortgage) which I do regularly. But if I needed more flexibility, I could cancel the OP's and pay a lower mortgage payment. For me my big sacrifices have and will be significantly reduced travel, weekends away, sports/gigs, takeaways. For me, it was worth it for a few years. 

It sounds really tricky for you - working out the sacrifices you are willing to make is hard. A larger property = more debt = more income required to maintain a standard of living

If yo uare willing to make certain compromises on your standard of living, that would help. But could you also be flexible. You say you have 3 days a week on one contract. Could you do 1 or 2 days a week for other projects on a less regular basis? E.g. aim to work 4 months of the year full time, 8 months 3 days a week? 

I hope you find something that works, so you can follow what you want in all parts of your life!

Thanks for the feedback and your story. To have to get a mortgage bigger than the original house price ouch...
The longer term, lower payments and then OP is the best way forward for me now as well, rather than saying I want a 16 years mortgage... I can trust myself now to save and OP, I have budgeted each month for over a decade and where I missed months I got restless and felt wildly unorganised even if I then went and bought something not in the budget..

I blame COVID for making me think about buying .. but it is the right decision as I do still have (just ) enough time before retirement to get this  asset sorted.
Yes I think I must choose to go for the 5 days however it is comprised   I am looking to compromise on the cost but London is it for me, I will not compromise on that so I need a more focused plan and more compromises and sacrifices elsewhere 

LadyWithAPlan

badmemory said:

We have all had that moment when we are saying to ourselves what have I done.  My first solo mortgage was 45 years ago.  My second really quite small mortgage was 30 years ago, thanks to moving from down there to up here.  I still had that OMG moment.  And my father still came with me in case he had to act as guarantor again.  But that moment when the roof over your head is totally yours makes it all worthwhile.  It is just that it is all down to you that is worrying.  But you are showing that you can do this.

I remember reading  that you said that before about your father as guarantor. Thats is just awful. I always like the phrase spinster as they were the only women allowed to keep their (often spinning) income, wives just had wealth handed over to their husbands.

Thanks for the encouragement - it is much appreciated and the acknowledgment that it is scary. I have worked the spreadsheet like crazy and it is doable. I will need to take some kind of critical illness or some such life insurance. I have no kids but be good to ensure the house is paid in the first few years.

I also think the joy and terror of my own place will also set a fire under me to get it paid off. 

Hope you ladies all having a great week.

badmemory

I think covid has made a lot of people rethink their priorities.  It has made some who can work from home move out of London to a bigger property which gives them office space, which should bring prices down in London hopefully.  When you consider that what you are going to pay for a 2 bed flat would buy a 4 bed detached out of London, you could see why a family would do that.

LadyWithAPlan

badmemory said:

I think covid has made a lot of people rethink their priorities.  It has made some who can work from home move out of London to a bigger property which gives them office space, which should bring prices down in London hopefully.  When you consider that what you are going to pay for a 2 bed flat would buy a 4 bed detached out of London, you could see why a family would do that.

Absolutely. My family all live outside London and some have a lot of land. It is my bolt hole if I need it but London is my place. I am hoping flat prices in London keep stable as more and more can wfh as a long term choice. Of course there are lots of foreign investment and BTL in London which does keep a certain floor to prices here.

£450k buys a lot outside London... where I live, a dodgy one bed with no balcony But I know I want 2 bedrooms so can always pull the lodger card if I get stuck.

Sistergold

Dear @LadyWithAPlan, when I feel afraid my motto always as a single lady is “do it afraid”! The honest truth is around 50 it’s really kind of the latest you will need if you want to look at getting the longer mortgage term. But if you are saving so much anyway and guaranteed that you will always be on top of house prices such that you will have enough cash to not need a mortgage or need a shorter mortgage then you can hold on to your freedom and keep renting. A large mortgage is easier the longer the term you can get! The approach is not to get the short term as you can always pay it quicker even if you get the longest term. So get a long term to remove stress in case funds get tight but OP, or have offset savings which you can pay off with whenever you choose! 

@LadyWithAPlan , I think you have got this under control! You will get a lovely new place for yourself! 🥰🥳

LadyWithAPlan

Morning and happy Friday all. Thanks for the calm clarity and outward perspective... I was hoping to do a 16 year mortgage but you are right lower payments is better and then get OP and SIPP blasting.  A few years  later,  an offset mortgage looks great - have you considered one?

Weirdly I  am known for my fearlessness, of going after huge goals or just dropping everything and travelling free. I have always somehow managed to pay my way even after I left a fabulously paid FT job. I come up with wild  ideas and pull them off both in work and in play. I have a wonderful life.

It is interesting thus that as a woman who everyone thinks is fearless I can suddenly see my fear in this one area - of financial responsibility over a long period and this fear of a monster debt which will 'tie me down'.  It is probably part of the reason for my clear choice to not have kids, lovely as some of them are   Even though I am responsible for myself  and pay for my life in every way.   

I am in awe of all your single ladies with kids, or indeed married with kids, you all work so hard at home and at work, whilst being MSE. 

You are so right though it is time to look at buying - my age, COVID clarity, a need to get this area of my life (a home forever) sorted - with a few years real focus - and then I can go back to my travelling free and doing what I want when I want. 

Sistergold

Happy Friday to you too @LadyWithAPlan. Happy Friday all you lovely laddies! 

@LadyWithAPlan, I don’t really try to look for an offset mortgage but I have had one when I was married. It was with Santander. When I had this offset account it was just that it happened to be an offset account as it was a good deal at the time. Not too much to it except that of cause you have a savings/current account linked to mortgage and so reduces interest charged. You can also create your own offset by investing elsewhere to gradually get to savings equal to mortgage balance(be mortgage neutral) and so it’s offset that way. If you can invest elsewhere and get higher interest then it’s better than a offset mortgage. After divorce the drive was for me to get a mortgage with the longest term borrowing my maximum to be able to buy a house which ticked all boxes. This mortgage didn’t have to have the lowest interest but I was more concerned about how much they will give me and for how long. Xx

LadyWithAPlan

@ sistergold I do understand you aiming to borrow your max especially with 4 kids, thats a lot of boxes to tick. You have made me think as my boxes that do need ticking are minimum 2 bed and some space outside be it a balcony or a garden so the £450k mark is probably what I need (ouch).

The offsets seem to be about 0.89% more at present v normal repayments. So yes creating your own does make sense if the figures work.