The Case of the Overwhelming Mortgage

AgathaSquirrel

Thank you @glass_half_full . Not sure why this has freaked me out so much this weekend. This has been the plan for a while and it’s too late to change it now. Think we’re making the right decisions for us so we’ll just need to go with it and see what happens.

greent

My DD and DS1 both have around 65K - 70k of student debt (undergrad + Masters) - and that's with us contributing to them and DD having a job in the final 2 years. DS2 is currently in 2nd year - he gets a loan and we top him up about 4k a year (might need to add a bit more for final term (he's in until the end), as shopping costs are rising massively. Thankfully, next year his future employer will cover his fees and he'll get a bursary of (I think) 5k, so that will be much better (although he has to commit to being with future employer for 6 years at a minimum after graduation) DS3 might go to uni locally (he's only in Y12 right now) 🤞 - if so, we'd cover regular living costs, I think, and he'd get a loan just for fees. If he does go locally, I plan on getting him to join the team of casual workers that I have at my place of employment (Although someone else will need to interview him instead of me) - that should give him some pocket money spends.

I think debt is the norm - but I do wish they'd increase the amount of the loan to a more realistic figure!

edinburgher

We've been investing for both DDs since birth, also aiming for the Scottish parental contribution of £12,040 for a 4-year degree. I've also had a recent wobble, however, because of the truly terrifying increases in the cost of living. YMMV, but I reached the conclusion (with some calculation assistance from Gemini) that I wanted to stick with this figure, inflation adjust it from their respective dates of birth, and cover their fees. That way they will get £12,040 in today's money, whenever their today happens to fall. I couldn't do fairer by them, we also won't be able to cover the cost of accommodation if they live away from home. It has been quite a jump for DD1 (born 2015), we now need to find £17,000+ by the time she gets to 18 😮

Combine this with trying to cover ourselves for 1-year retirement bridge with ISAs (57-58) and saving for a hopeful extension, and I suspect we are going to face some tough choices later in the year.

South_coast

When do student loans get written off now? I only know about mine (which didn't), but I'm wondering whether parents may be better off getting the kids to borrow the max they are able, then instead of covering/contributing to costs while they are at uni, instead reimbursing them for the 9% the SLC will snaffle from their pay packets for x-many years in the future 🤔? I wonder at what point you would break even vs helping them out upfront?

AgathaSquirrel

Scottish loan is 30 years. My tired brain can’t do the maths to work out what is better.

We will be similar at £17000 @edinburgher. The £12000 is saved and £100 a month will make up the difference.

edinburgher

@beanielou - I'm not sure I like that model. The more successful your child/children, the more you'd end up paying them back 🤣

greent

https://forums.moneysavingexpert.com/discussion/comment/81943504#Comment_81943504

My eldest 2's get written off after 30 years. #3's will be after 40 years (I'm hoping that #4's won't be any worse than that!)

Mine have borrowed the max allowed each time - we've still had to contribute varying amounts each year, depending on our finances. When we had 2 overlapping at uni for 2 years that was rather tough!

AgathaSquirrel

Thanks all - it’s good to hear everyone’s stories. We will potentially have 2 overlapping as well @greent which is also a consideration.

That’s so unfair on your children that 2 are 30 years and 2 40 years. I do think an overview of the whole system is required.

AgathaSquirrel

Mortgage is now in £37000s (just). Next goal is £34000 for remortgage in September. Hoping this is the last remortgage but orange man and personal circumstances may dictate otherwise.

beanielou

Here’s hoping.