What to do with 35K

Bigron2418

Hi experts,

I have recently come in to a windfall of 35K and I was thinking of paying off part of my 58K mortgage, but have been advised against doing that and instead put the windfall into a high interest account, and use the interest to reduce the mortgage.

Any ideas better ideas?

g002ahe

you need to compare your GROSS mortgage rate with your NET savings account rate - which depends on your tax circumstances.

if your mortage is heavily discounted then its just possible that you could be better off with a savings account.. unusual though

Alias_Omega

Im no expert but id be thinking on the lines of a ISA or something.

I know on £6000 you get £25 a month interest. So on £60,000 technically you would get £250 a month.?

So £35,000 would get you £140 a month.??? But then you have to think about the tax you pay, so maybe £125 a month.?

As i said, im no expert, but id be thinking of the cash i can make on the funds, before going on putting it into reducing the mortgage. Obviously you would be wise to reduce the mortgage, but i would guess your living comfortably with paying it, so why change it.

Id prob take £1000 for yourself, and put the £34,000 away for saving / interest purposes.

rooo

You also need to take into account wheteher you can overpay on your mortgage and by how much a year - some only allow 10% overpayments per year, some allow none.

As mentioned a 60k mortgage is what, £350 a month? If your comfortable with that then spend a bit, and save the rest. Maybe make an overpayment when you next come to remortgage.

Bigron2418

Thanks all - appreciate your comments