to want to pay off the mortgage instead?

[onnwt]

I was gifted 100k last year. Dd is due to start school in a year. My parents (who gifted the money) are ‘very sad’ I’ve decided to use the money to pay off half the remaining mortgage instead of towards school fees.

They said they assumed I would keep the money until she started secondary (and presumably add to it between now and then) or I would use 10k a year from the 100k and spend my own income on the rest of the fees per year if she was to start age 5. They’ve said I can do what I want with it but they ‘assumed I wanted dd to have the best opportunity in life.’

My outstanding mortgage is 208k. I would love to pay it off to under 100k as I would then realistically be mortgage free by 45 (I’m 32). I’m now second guessing myself as I do have a healthy income and could feasibly just pay the fees from income alone. I wanted to enjoy life though. For context state schools round here aren’t they best but aren’t the worst either. I’m now feeling like a shit mum and also even worse as DS’s dad has zero interest so this decision totally rests on me. WWYD?

I’m already hanging on by a thread trying to balance everything. I don’t know if I will be in a lesser paid job in future, who knows. I feel really sad today, I can’t do anything right.

You should not feel sad. You 100% have made a really, really sensible decision and given yourself financial security and choices for the future. You should be proud of your choice.

I would pay it into my mortgage especially if you have a mortgage offset account or a mortgage with redraw facility then the money you inherited is used efficiently and you can tell your parents the money is there for DD schooling?
The money you save in interest and a lower mortgage could go to savings for DD or at least tell parents that. I think there are savings vehicles especially for education also that are tax efficient. I was told about this by a friend.

This seems like sensible advice. I received an inheritance in 2008 and the first thing I did was to pay off my mortgage.

Pay down the mortgage, free yourself up financially which has all sorts of benefits around it.

as someone who went to state school, but was friends with many from the highly regarded private school I can tell you I have done just as well in life, if not better than many, of those that I know from back then! I am of the firm belief that if a child wants to learn they will learn no matter where they are.

That being said, securing your financial future by paying down the mortgage will open far more options, including extra curricular options. To be frank, after the week I’ve had nobody knows what’s around the corner. I would always be paying down the mortgage!

as for the grandparents, if they wanted that money used for something specific like school fees then they should have said ‘we will pay DDs school fees to the value of £100k’, not given the money freely.

I am on your parents side, pay the best school for your DD.

but then again, it is really inly you that know what is best.

good luck :)

But they have given her money that won't cover the full cost. What if OP loses her job? What if she can't pay the extra needed? She uses up the £100k then pulls her out into state school? That's worse than being in that school from the start. At least if she pays off mortgage she can try be mortgage free so should she have a good job she can afford private school or extra tuition and curriculars in state school under her own steam with a secure home she has saved tens of thousands of interest on.

Hi :)

well, it depends which school of course but £100K is plenty to cover a good school around mine. And that would leave extra ro pay some of the mortgage.

private school can have some schemes if your income falls short. You also have bursaries. In any of this scenarios, it is best to spend money on securing a good education if the state school isn’t good.

i would calculate from which year I can affird this and make plans.

but again, that is my opinion only :) as requested. I hope op and dd will just be happy and stressfree anyhow 🌺👏🏼

well, it depends which school of course but £100K is plenty to cover a good school around mine. And that would leave extra ro pay some of the mortgage.

Really ?
14 years of schooling, plus expensive uniforms, and other expenses ?

I am no expert but I don't think the £7,143 a year will cover that.
Fees alone seem to be double that, not counting the more expensive schools.