Inheritance - what to do with it!

Mrs_Zippy

Sadly, I've recently come into some money via an inheritance. :A

The problem now is what to do with it. I'm thinking of paying the 10% I'm allowed off the mortgage and then another lump sum when we come to re-mortgage when we fall out of fixed rate next July.

As a higher rate tax payer I would have to be getting about a gross 10% interest to really make it worth my while keeping in savings as opposed to paying of mortgage. Having said that I am going to put some into savings just so that we have that 6 month buffer - just in case!!

I think I am answering my own question here and convincing myself of the way forward, but just wondered if you were in my situation - what would you do?

Thanking you in anticipation of some of the wonderful advice I have been reading on a couple of the threads

Mrs Zippy

0james0

You are exactly right you have answered your own question! Best advice is that the money is better off on your mortgage than in your savings due to the net interest rate on your savings.

Put in as much as you can now and then as much as you possibly can when the fixed rate finishes. Will you have enough to clear the mortgage then?

Once your mortgage has been paid off you can then concentrate on saving the money you would have been spending on it each month (after a smalltreat for yourself for being mortgage free!)