Mortgage/Savings query

christm_2

Hi

Not sure if this is the best forum to post this in but here goes.

I have come into around 35k cash and am trying to work out the best thing to do with it.
My plan is to put most of it into my mortgage but to give full details:

I have a property valued at 160k which has 142k remaining on mortgage.
My current mortgage is fixed till August 2014 at a rate of 5.09%
My monthly payment is £850.

As the mortgage is fixed till August 2014, I can't really change product till then and can only overpay so much before incurring charges.
Therefore I could pay off £14,200 of the remaining amount which would bring my payment down to £761 per month.

As far as other outstanding debt, I have no loans but have around 7k on credit cards which is all at 0% for at least 12 months.

I guess I have 2 questions:
1. Is paying £14,200 into my mortgage the correct thing to do or is there a better way to utilise the money until I am able to change product (and therefore able to put it all into the mortgage).

2. If it is the best thing to do, what should I do with the remaining 20k-ish which I can't put into the mortgage until next year?

Thanks

Thrugelmir

My suggestion.

Pay down the mortgage by the maximum you are able do so now.

Put aside £7k into a savings account so that you can clear the credit cards when the time comes.

Put some money aside into an ISA so that you have an emergency fund.

Next year when the fixed term ends use the remainder to reduce your mortgage further. With windfalls it's worth using the money to change the future and make it far securer. All too easy to burn the money and have nothing to show for it.