150k - which would you do?

I honestly couldnt spend £150k on one child education. It just seems a lot. My friend privately educated her 2, one became a builder and one a hairdresser. I just though what a waste!!

Do you know how much the fees will be?

Save it. You can 10% return if you find a medium risk unit trust. With compound interest, it will be c.£427k in 10 years time, then you can pay your mortgage off in full and have spare for the school fees - if you can afford your lifestyle as it currently is in the meantime.

You can put money in and take it out whenever you want. When the money is in there, the interest is calculated as if you have paid that money off the capital owed.
I’m self employed and it’s where I save up to pay my tax bill every year. It has saved me a fortune in interest over the years.
It’s nowhere near as good as the 12% you are getting elsewhere though!!

They used to be quite common, not so much these days!

Generally (and definitely in your case) paying off your mortgage saves you less than you would make by investing the money or putting it in a decent savings account. Though I understand that mentally paying off the mortgage feels better!

Paying off the mortgage also locks that money away - and that's risky, especially as you're fairly young, have a child, and have relatively imminent plans for the money.

I mean, personally I’d buy some land and some goats… but I think we’re probably quite different people. £12k sounds like a good investment so I’d only spend the interest (if I was being sensible).

Keep the money in your current investments, use the interest to overpay the mortgage and reduce the monthly payments (rather then reduce the term, you may need to specify you want to do that with the bank, ours always defaulted to a shorter term) use the money saved from the monthly mortgage to add back to the capital.

Doing this, the capital will rise, as will the interest you will be using for the overpayment and you mortgage will also reduce.

It may not be the most optimum in terms of income but I would want to make some impact on my mortgage. You have no idea if your investments and savings will continue with their current return. You have no idea what your mortgage interest rate will be next time. If you can get a 5 year fixed rate at a decent rate do so!!

Sorry, not giving advice here, but just interested to know how you are making £12,000 interest a year, as I thought rates had lowered?

Investments. You won't get anywhere near that with cash savings. Eg: Global FTSE tracker has moved -1%, +6%, +16%, +15%, +22% in the last 5 years.