Cash in ISAs to offset mortgage?

ManicMum

Hello

I have a couple of ISAs. I am applying for a bursary for a private school for one of my children. Obviously the more I hold in savings, the worse it will be for me in terms of financial support. I am not talking major savings here. I am thinking about whether to cash them in and pay into my offset mortgage. Or does that sound like a dumb idea as will then have lost the ISA allowance for that year for ever?

thanks

Voyager2002

Are you sure that the school asks about savings? It is more usual for them to base the decision on income.

Anyway, a school is not part of HMRC and only knows about your savings if you choose to tell them. Rather than messing about with money transfers, why not simply 'forget' about your savings?

ManicMum

Oh right. I am just too honest and fret about these things.

yes, the emphasis does seem to be on income left over at the end of the month.

I also have an offset mortgage which I have reduced somewhat by bunging in some other funds (again not masses - single figures). Do I write that the mortgage outstanding is the original amount borrowed as those funds I have put in are still available for me to withdraw? But then that looks as though I have even more savings at my disposal!! Or do I put what it is now?

what do you reckon? cheers

Voyager2002

Personally, I would look carefully at the application form and at what supporting documentation they need. I would then make sure that I could come up with the required documentation. However, I cannot imagine that a school would go to the trouble of asking about amounts outstanding on the mortgage. Far more likely: they will attempt to fill all their places with fee-paying pupils; if they cannot do so they will see if they have any money available for bursaries; if so, they will consider candidates who seem likely to bring credit to the school and will seek to persuade the parents to pay as much as possible, eventually negotiating a discount. While they are unlikely to give a discount to an obviously wealthy family, the outcome will depend upon how much they want the candidate as a pupil and how much they think they can get the parents to pay.