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    • topley4718
    • By topley4718 12th Mar 18, 9:08 AM
    • 15Posts
    • 2Thanks
    Best Course Of Action
    • #1
    • 12th Mar 18, 9:08 AM
    Best Course Of Action 12th Mar 18 at 9:08 AM
    I am set to inherit £10k and would like to pay some off my current mortgage, owe approx. £30k with 9yrs left to run. My question is do I pay off the lump sum and reduce the years left on the mortgage (I assume it will knock around 3yrs off) or do I pay off the lump sum reduce the monthly payment but keep paying for the remaining 9yrs.

    Another factor into the mix is that we need a few home improvements – kitchen/bathroom – did we leave the mortgage as it is and use the cash to get the work done?

    Any advice or alternative suggestions would be appreciated.
Page 1
    • AnotherJoe
    • By AnotherJoe 12th Mar 18, 10:26 AM
    • 8,578 Posts
    • 9,379 Thanks
    • #2
    • 12th Mar 18, 10:26 AM
    • #2
    • 12th Mar 18, 10:26 AM
    If your mortgage is an average rate, say around 2% for example, then its less than inflation which is eating away at it every year so i wouldn't be in a rush to pay it off, indeed i wouldn't pay it off.
    If you pay that £10k off in 9 years time for example it will only be about £8,000 in todays money. Why pay £10k now when you can pay £8k later?

    If you use it on home improvements those are things you'll get the benefit of for the next 9 years. You cant put a monetary value on those but arent they worth more to you than saving about £16 a month in interest? Spend it on those.
    • topley4718
    • By topley4718 12th Mar 18, 10:33 AM
    • 15 Posts
    • 2 Thanks
    • #3
    • 12th Mar 18, 10:33 AM
    • #3
    • 12th Mar 18, 10:33 AM
    That was sort of the way I was thinking, thank you.
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