New kitchen or pay off some of the mortgage?

[reastie]

I'm in the very lucky position of having inherited a bit of money. We have been planning on spending it on a new kitchen, windows and new roof (it would at a push cover all of this). We have spent months planning the kitchen/choosing specs etc. It's at the point of booking it in to be done in a couple of months time.

DH announces to me last night in an argument about money if it was up to him we wouldn't buy a new kitchen, we'd buy the windows (as they are absolutely rotten through) and spend the rest paying a lump sum on his mortgage for his property he bought before we lived together which he now rents out (rent doesn't cover mortgage though). I was as he's never even mentioned this before and I now have no idea what to do for the best and would appreciate some advice on this (if there's a better topic for this please let me know).

If we paid off some of his mortgage it would be about 2 years worth of payments, meaning if we then carried on as we are it would be paid off in around 5 years (DH is 35, I'm 31). We are very lucky in that we own our house outright. We don't have a huge income, DH is a gardener and I'm a PT teacher. I looked upon it as this will be the only time ever we will have a decent amount of money, we need a new kitchen so it's a great opportunity for us to get it done. Our current kitchen is over 20 years old and falling apart, but is in just about working order.

If we didn't get the kitchen redone we would still have to have some work done to the house with the inheritance (bring the washing machine downstairs from the bedroom where it shakes the whole floor upstairs, get a hard floor for the dining room where the carpet is ruined with DDs spillages) but I guess this would be on the short-medium term length with a view that the money we'd save from not paying the martgage/getting rental income from 5 years time would mean we could save for a new kitchen within the next 10 years.

I have no idea what to do now, and I realise I'm very lucky to be where I am, I just want to spend the money wisely. It's my Grandmothers life savings and I need to choose the best thing to spend it on. I can see where DH is coming from but I guess part of me sees his old house as 'his' and not mine.

[Yfronts]

It's not his inheritance though is it? I'd only be willing to use the money towards his mortgage if he was willing to put the rented flat in your name also.

You are in a lucky situation and personally I'd use to to sort out your own house.

[Glittertwins]

Nearly, I wish it was 3%!!

[Glittertwins]

Shouldn't really need too much looking into, I don't think there is a lot around charging that amount. But, it is possible to find better rates than the brokers could find, I got better direct at the hell that is HSBC and negotiated fee free for our rate which is neatly half of your DH's and there is better now that it seems to be getting tough on lenders again.

[reastie]

Just wanted to update, we're just feeling kitchen is too £££ so are buying new windows and roof and then seeing what's left for kitchen. I've said to DH can I have my name put on his house, he said if I want to pay legal fees then I can . I've offered him £500 inheritance for his blasted trees which has kept him sweet. It means alot to him and he does put all of his income into house bills. He is looking into new lower interest mortgage rates.

[HalleLouja]

Maybe its worth speaking to a lawyer / posting on legal to see what your position is on "his" house.

[GreenEggsAndNichts]

I think he needs to sort out the mortgage, that is a crazy interest rate to be paying at the moment.

Please use the money on the house you live in. Most people here have already added the commentary as to why. I agree with them.

I am normally very fiscally prudent, and would advise say, if you had a lot of debt, to pay off that debt first. However, this house of his really feels like 'his', and I'm not sure why you should be paying off his debt, for 'his' pension. He has taken on this debt. In the meantime, your home needs upkeeping.

If you want to cut costs on the kitchen, IKEA does very sturdy units, you could get doors elsewhere if you really wanted to. But they're very good quality.

[Viviennemary]

I am not quite sure about the legal implications. But the marital home where you both live is usually shared no matter who paid for it. But another house owned by one partner might come under different rules. On principle I wouldn't pay with my inheritance money a mortgage on a house owned by my DH. I am sounding like my mother. Who used to say to my Dad 'What's yours is ours and what's mine is mine.' He just smiled. Hope you sort things out.

[reastie]

Am I wrong but I assumed since we were married if we did split even though I may not be on the deeds it's still 50% mine anyway? That's one of the reasons I put Dhs name on our house when I had the choice - if anything happened to us I assumed he was entitled to 50% of the house in any case. Maybe I should mention this to DH about his house even if I don't pay any of the inheritance towards it to see how he reacts. I feel like he does see it as his so it would be interesting to see if he would change it. I know what he'll say though, it will be expensive to add me on to the deeds with the solicitors fees etc so what's the point.

[Viviennemary]

I don't think you should pay off the mortgage on a house that is not jointly owned. Unless perhaps he is prepared to put it in joint names. Under the circumstances I think you should go for the new kitchen.

[morethanpotatoprints]

If it is your inheritance I would do neither, or get your name on the deeds and pay off mortgage.
Always more sensible to do this and its amazing how much more disposable income you have when its gone.
I'm amazed you are not on mortgage though, you really need to do this. I have hardly contributed to paying anything as I don't work, but the house is still half mine should we ever split.

[HalleLouja]

But Bobbi she said the shower isn't all that. If it was then it would be worth spending money on.

[BobbiFleckmann]

oh my god, with an interest rate at that level, your DH can buy himself the equivalent of a £10k payment off the loan just by switching provider! he's paying through the nose pointlessly. Keep the cash for the kitchen, and present him with details of the new 2% mortgage that you'll go on along with the deeds.


I coudl do £5k on a shower very easily... nice metalware and tiles? frameless? Oh yes....

[orangepudding]

With 7 years left not much will be interest. I think we paid £500 to fix our mortgage a few years ago now it costs around £2000! We didn't bother fixing again as we were close to the end of the mortgage so very little of what we were playing was interest.

[HalleLouja]

But you aren't paying that much interest anyway if you are in the last few years. As long as you are not having to pay ERC I would be tempted to switch. We are paying just over 2% on a lifetime tracker I think but were in a 10 year fix at 5% before that.

[reastie]

I know halle . In fairness we didn't shop around, I was heavily pg and DH was desperate for a shower and we wanted to get it done before DD came. We went with somewhere we knew wasn't the cheapest but they could do it quickly. If we had more time we would most likely have chosen differently.

6% is stupidly high then? DH got a deal before the interest rates went down a few years ago. He should have been recommended variable rate but wasn't by his financial advisor (needless to say we won't be using him again!). His mortgage is up for renewal soon and hoping for a better deal this time.

[HalleLouja]

£5k on a shower cubicle! I think you may need to get more quotes next time

[kitsmummy]

Sorry, I misunderstood about what the £25k bought. But actually, even though I realise the £25k is only for the kitchen, I say fuck it, go for it and get the kitchen you want!

As you have no mortgage and another house that is very nearly paid off, it would seem silly to compromise and get a lesser kitchen that you don't really want. You're in an enviable position and can afford to be slightly frivolous

[DelGirl]

I'd be inclined to go for a cheaper kitchen but get all the stuff done that you want to and either save some for emergencies that crop up such as a new boiler for the rented property e.g. Also don't forget that though the mortgage payments will be lower, you could end up paying more income tax on any profit.

[Glittertwins]

Think we may have wires crossed flatbread. He still has a mortgage to pay and 6% interest is stupidly high. The interest repayments last the life of most loans.

[flatbread]

The thing is Glitter, at least for us, the mortgage interest is paid off in the first 15 years and the last five years (20 yr mortgage) are capital repayment only.

So it makes absolutely no sense to pay it off 5 years early.

But otherwise agree with you that 6% is very high, given the presumably large equity in the house.

[Glittertwins]

6% interest is a ridiculously high interest amount. Haven't either of you taken any notice about the news and lower mortgage rates?? He can nearly halve that if he only has a few more years - he must have a huge amount of equity in it!

[reastie]

flat we've had some tiles replaced already, we think the leak might be from flashing. It looks like it's fine but might not be. Roof quotes we've had for whole new roof have been 10k. It's not a huge house - a slate tiled roof on a 3 bed Victorian semi. A neighbour of mine had his done for a similar price. of your bathrooms btw.

soaccidentprone interesting link. Thank you. Worth looking in to.

[flatbread]

I would think 10k for the roof might be optimistic, especially if it is in a bad state and is leaking.

It could be something minor like flashing or a few loose tiles, which could be fixed under £3k, or it may need a full roof overhaul which could cost £30k, depending on the type and size of roof.

So if I were you, I would sort that out first and then do windows. And then with the left-over, get a kitchen you love. ime, a good, well-planned kitchen provides immeasurable joy! You use it everyday, at least three times a day and it is definitely worth spending on.

Your workers seem expensive compared to ours, but we are not in the SE. We got two new bathrooms fitted, one with a bath and the other with a shower. The one with a bath was under £3k including sanitaryware and tiling. The one with a shower was closer to £5k, but included a custom built shower tray, wetroom style.

[soaccidentprone]

have you investigated the green deal you may be able to get new windows from this.

[reastie]

Green where do you live? and can I pinch your builders please We're in SE England and everyone seems so expensive! We want to go by personal recommendation having had alot of problems with workmen in the past (hence why we are picking a perhaps more expensive but good tradesman)

panna we are going with local independents for the work

Special adding value to our current house isn't any consideration to us as we aren't going to move hopefully.

Flat I think you have DH all wrong. In actual fact he pays ALL the bills etc on this house. I think he has issues with being given a house by his PIL and finds that hard to accept.

Mutley I already take the outlook to inheritance as you. I've already spent 1k of it on a gorgeous antique French bed and the nicest duvet in the world. It was frivalous and DH looked at me like this but it's something I'll keep forever (well, the bed maybe not so much the duvet) and would not have managed otherwise. I feel sure my Grandparents would have liked to have thought they would have been able to buy this for me.

Kits the 25k is for the kitchen, then 15k for new double glazed sash windows throughout and then 10k for the roof. That's all of it then gone. Maybe we just pick the wrong tradesmen - a couple of years ago we had a shower put in. Just a shower cubicle FGS. It cost us 5k and it isn't even an amazing looking shower, just a pump shower with laminate wall panels. Things just always seem so much more than we anticipate. Yes, DH is VERY cautious with money! He's always saved and never really spent much money.

Dupain yes I spend heaps of time in the kitchen! DH does not. My career is to do with cooking and food too, so in a way it's my life.

orange DH is paying 6% interest. No idea if that's much or not