Mortgage and dtr going to university

jjmack

Hi,
We have 2 years left on our mortgage and our current mortgage comes to an end in June leaving approx £18k left to pay.

We are in a bit of a dilemma as our current payments are about £880 PCM and we can't afford that and supporting her through uni.

We have money in an ISA so could pay off the mortgage which would mean more available money to support her but then our savings will be very low.

Do we flip onto the SVR and carry on paying and pay her from the ISA as the growth rate on this net is more interest we'll be paying on the mortgage. Or do we go mortgage free and then everything is ours!

I suppose the other option , if possible, is to pay it off on a card and then switch to interest free deal, but know if that would save us anything once the fess have been paid.

However if we go for another mortgage will we struggle to get a 2 year term as the quick search I've done is for 5 years.

Thanks in anticipation

amnblog

Your post is very confusing but I think I have the gist of it.


Questions are:


How do you want to support her? Out of income or out of capital.


Putting it on a credit card sounds pretty crazy.


Perhaps you should work out your budget to support her over 3 years and work out if it makes sense to borrow it (and keep your case invested), if it can come out of income, or if you are best working on a mixture.

xyz123

Can u extend ur mortgage term to help reduce the monthly outgoing?

flashg67

Happy to be told I'm out of order, but this is only my opinion, so here goes! My step daughters knew what help they would get from us (not a lot) and prepared for it by taking loans / getting a part time job. Is it reasonable to suggest your daughter pays/borrows her way herself through uni. Good experience and prep for adulthood, with the option to help if she mucks it up?

davilown

I agree - my son is at uni and we help him with £120 a month for food. Any other monetary needs he has, he gets from his job.
Let her support herself

The_Real_Cheddar_Bob

agree with the above. As my wife says, struggling through uni was part of the fun. i took the uni of life so benefited from income since 16.

If you are able to extend your mortgage super,

rather than giving your daughter money, what about sending her food - asda or other supermarket onlie shop once a week?

AnotherJoe

jjmack wrote: »

Hi,
We have 2 years left on our mortgage and our current mortgage comes to an end in June leaving approx £18k left to pay.

We are in a bit of a dilemma as our current payments are about £880 PCM and we can't afford that and supporting her through uni.

Then dont support her through uni. Get her to take a gap year and a job and save.
And then a job whist she is at uni. If you cant afford it, you cant afford it.

Tell her that so she understands your financial realities and perhaps makes a rational choice about whether to go, if she was planning to study a subject that wont lead to a good career.

This would be a much better long term help than you struggling to support her whilst she does say Ancient Egyptian studies or similar. Or, if she wants to be a doctor, an accountant or something else that needs a degree, a year out away from study in the real world earning money would be a boon to her longer term success.

Its not mandatory to go at all, for many subjects its a lousy deal financially and even if not, its not mandatory to go immediately she leaves school either.

jjmack wrote: »

I suppose the other option , if possible, is to pay it off on a card and then switch to interest free deal

That would be insane.