To Overpay or not Overpay - that is the question

Phoenix1988

Hello everyone,,


Im pretty new to this forum posting malarkey so please be nice


My fianc! and I bought our first home together 1 year ago with a 40 year mortgage!!
Our reasoning was that we are young and on the first rung of our respective career ladders and so our salaries are at their lowest.
Another reason was that we are getting married in this July coming so we needed some disposable income to save for that. Long story short after the wedding we are going to be gifted £15,000 and we currently save £750 a month for the wedding which will be available post wedding.
We have no children yet so when they come along some of that will be taken up and we are keen travellers so most of that will be taken up on trips before we start trying for children.


So, my question is, should we use the lump sum (I calculate we can pay off 9 years with just 10k) and then some of the monthly disposable income to overpay on our mortgage to pay off some years, or invest it elsewhere (savings/ bonds/ ISA's - anything else)


Any help/ advice/ previous experience would be massive help

egoode

Do you have any emergency savings at the moment?

If you don't have any emergency savings for things like being out of work, boiler needs replacing, roof need replacing, etc. I'd probably use the money as your emergency saving if you don't have something already.

If you do already have emergency savings then I would definitely consider putting some of it on the mortgage. It really depends on what your interest rate is on the mortgage and how much you could potentially earn on the money via savings/bonds/shares etc. as to whether you are better off putting it on the mortgage or investing elsewhere.