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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

150k - which would you do?

35 replies

Forya10 · Yesterday 20:11

I owe 270k on a 550k valued house. I am due to remortgage in a year at which point I will owe 260k. I’m 38 and single and likely to remain that way.

I have saved 150k to put my child through private school from age 6. I wouldn’t want them to start later as I am keen for them to go into that intake. I am hoping people won’t derail the thread and make this about private v state!

Would you keep the 150k (earning around 12k a year interest at the moment) and slowly use it towards school fees or would you pay the lump sum off the mortgage and begin saving again at that point/paying for fees from income as savings (hopefully) build up?

I doubt I will get a better rate than 4.5% when I re mortgage.

OP posts:
Forya10 · Yesterday 20:19

Lyra25 · Yesterday 20:15

Can you afford to pay fees out of income if you pay down the mortgage?
I would be tempted to pay down the mortgage
how old is your child now?

@Lyra25 yes but it would be v tight. After paying fees I would have around 3k a month for everything including mortgage payment of around 900

OP posts:
Forya10 · Yesterday 20:18

Octavia64 · Yesterday 20:17

Is it a flexible mortgage?

ie can you get it back out as and when you need it?

@Octavia64 I’ve never heard of those?!

OP posts:
Forya10 · Yesterday 20:17

Nimblethimble · Yesterday 20:15

Where is it currently invested? £12k seems a great return.

@Nimblethimble some premium bonds, some investment account and the rest isas

OP posts:
Octavia64 · Yesterday 20:17

Is it a flexible mortgage?

ie can you get it back out as and when you need it?

custardlover · Yesterday 20:17

12k is a fantastic return and will likely pay 1/3 to half of your annual fees which would mean at the end of the school life you’d still have a lump sum to put down on the mortgage.

Nimblethimble · Yesterday 20:15

Where is it currently invested? £12k seems a great return.

Lyra25 · Yesterday 20:15

Can you afford to pay fees out of income if you pay down the mortgage?
I would be tempted to pay down the mortgage
how old is your child now?

Hollowvoice · Yesterday 20:14

How much are you saving per month and how much of the annual fees would be covered by the 12k interest you are currently earning?

Forya10 · Yesterday 20:13

cestlavielife · Yesterday 20:12

You cannot easily access money tied up in a house. Keep it separate.

@cestlavielife mentally I want it paid off but it does feel daunting to start again with around 3k which is all I would have

OP posts:
cestlavielife · Yesterday 20:12

You cannot easily access money tied up in a house. Keep it separate.