dilemma - opinions wanted...

Taylor132

I am basically after advice. I have been very fortunate and have been left the best part of £13k. My mortgage is currently at £93k. I am single and planning on children in the next 4-5 years. So far I haven't touched this money. £10k in sat in ISA's (over 2 years) and the rest is in premium bonds.

I'm not quite sure what to do for the best. I'm torn between clearing a large portion of my mortgage or retaining the lot to act as a safety net and also cover child costs in the future.

I think I need some different perspectives so any and all suggestions/opinions are most welcome!

egoode

If you don't already have a safety net/emergency fund then I would leave the money where it is and not put any towards the mortgage.

Hurdler

I would maybe work out what 6 months of your current outgoings are and put that aside, and then maybe may off a smaller chunk of the mortgage - maybe dropping it below £90K maybe a nice psychological boost. I know when I threw my redundancy money at mine and got it below £100K it was a massive boost even though there was still so much more to pay off.

jimmybrid

I have two kids under 5 and know how expensive they can be, especially if you need some form of childcare if/when you go back to work.
I'd pay off the credit card using the premium bond money, and keep what's in the ISA's. Personally, not a fan of premium bonds as unless you win a prize your money doesn't earn you anything, so as long as we have inflation the value of your savings is going down every day.