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.

[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.

[Glittertwins]

Nearly, I wish it was 3%!!

[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.