windfall advice

mirakl

I'm getting a surprise windfall of £4,000.

Would I best best using that to pay a chunk off my mortgage (which is a tracker) or put it in a high yield account?

ReportInvestor

Congratulations .

If the mortgage rate is 4.75% then you need 5.94% in an interest bearing account to be better off if you are a basic rate tapayer and 7.92% if you are a higher rate taxpayer.

So paying off your mortgage is mathematically the best option.

But there can be other consideration - e.g. having cash available for emergencies, children's house deposits, retirement planning etc.

mirakl

I'm 28 and child-less (and very happy about it!) So I think that paying off my mortgage is my best option.

(My parents need to save their windfall in case I need emergency money being an only child rocks!)