Inhertitance pay lump of mortage or not

Miss_Cakey_Bun

Hi there

Last year after some research my husband and I started to buy our council house, we thought long and hard as we could only afford a 20yr mortgage and my husband being 55 ( i am 39) was a big issue. We decided to go ahead and the sums are as follows

House value 08/08 £195,000
purchase price 06/08 £146,000 (thanks to our discount)
Mortgage £146,000
Mortgage fixed for 5 years 5.9%
repayments monthly £1013 ( we can afford this amount and some increase if we really have too)

Other debts £0
Savings around £12,000 in Isa's etc (for emergency's etc)

We discovered this week that within the next year we will inherit around £60,000 and of course with hindsight might have used this for a deposit but given the current mortgage climate probably would have struggled to get a mortgage anyway given my husbands age.
Anyway I am trying to work out if we are best off paying this off as a lump sum from the mortgage or investing it and making over-payments. I have looked at the different calculators and cant quite get the answer. I have also read loads of threads but don't seem to find anyone with a similar issue.

Obviously the quicker we can pay off the mortgage and if we could do this within 10 years (when my husband will retire) it would be fantastic! I know we don't have crystal balls to predict the mortgage rates in 5years time when ours ends but I don't know if I should be trying to take this into consideration too. Being so new to the mortgage and house owning game makes it a bit harder too :-)

Any help and suggestions will be very gratefully received.

Thanks in advance :beer:
Wanda

Miss_Cakey_Bun

for some reason this has come up twice can one be removed please :-)

Incisor

Mrs_Hornsey wrote: »

for some reason this has come up twice can one be removed please :-)

Suggest you edit and remove the text on your first post on this thread.