Student finance and inheritance/ value of residential house

[IncessantNameChanger]

I'm sure this has been asked before but...

I currently have over 20k in savings from a very recent inheritance. I have a fixed interest only mortgage which I haven't paid a penny of capital off ever.

I was waiting to sell my mums probate house then use all the inheritance at once to downplay some the capital on our house.

My sons just reminded me of his student finance forms I need to complete. We are a very low income family and I am full time carer for my disabled son.

So how will 1) the inheritance affect the loan if i down pay the mortgage ( its got to be downpaid at some point anyway or we will have to sell it to cover the down-payment at term) or does the equity in the house count as much as savings anyway? Totally clueless here! I was trying to avoid a 3k fee on any early repayment in my fixed term hence inheritance sitting in the bank or I will pay two lots of 3k, the second lot when probate house is sold. Thanks

I think it’s only earned income not capital.

Ah OK, thank you. We are normally piss poor. I feel really bad about the death and can't face touching the money. But also I need to pay the mortgage down or end up loosing the house when the mortage term ends. Want to think about what's next with a clear head but of course ds needs his finance sorted on time, not when I'm better able to think straight. My inheritance just reminds me both parents are dead to soon right now.

Thank you

Student finance won’t open till March so you have some time if it’s difficult to think about now.

@IncessantNameChanger , look at the student section on Martin Lewis's moneysavingexpert website and search on the Facebook group WIWIKAU - it will answer your question.

I'm almost 100% it's taxable income. Otherwise everyone's house would need valuing! You might have to submit proof by way of a tax return. This includes dividends, taxable state benefits, savings income, rental income.

Agree house doesn’t come into it or we’d hear more complaining about it and how could student finance check everyone’s house valuation, equity in said house etc and even if they could what would that mean. Anyone with over 50% equity or a mortgage less than 50k or a combination or what? It would be a nightmare! Plus it would “benefit “ southerners who might have a larger loan or lower equity but that is because they have a more expensive house.
I would definitely clear your mortgage with your inheritance

@IncessantNameChanger have PP have said, it's based on income, not savings.