What to do with £150k or £700 per month?

Carnival789

We are thinking of down-sizing our property next year, but are undecided of how exactly to proceed with the this.

If we port our current mortgage across and bank the equity we will have around £150k profit to squirrel away.

Alternatively, we could use the profit to pay off the mortgage and free up the £700 (ish) per month that we currently pay to our mortgage account.

It's a big decision to make so we will look to seek professional advice in the new year. Although I try to stop myself, I can't stop thinking about this now and I'd be interested to hear of what others would do in our situation.

We are quite risk averse and would probably only consider "safe" options. And, If it makes any difference, we are hoping to retire within the next 10 years.

sharpe106

safe options are bank accounts and isa's but would only pay a few %. Yorkshire Building Society at 2.3% seems to be best ISA for 3 years at moment

What % rate is your mortgage as unless you have an ultra low rate it is probably worth paying that off

colsten

What are your pension arrangements?

Eco_Miser

Personally, I'd pay off the mortgage, then pay the £700 into Regular savers at 5% or 6%, or into investment funds through S&S ISA or pension - or some combination of the three.
That's less frightening than trying to find a safe but profitable home for a £150k lump sum.

bsms1147

Fully offset your mortgage.

darkidoe

I would pay off the mortgage to relieve the stress of worrying bout debt..

atush

I would not pay off the mtg, I would offset some of the cash, and put the rest into pensions. For both of you. So as to boost it, and keep it safe from taxes- both income and CG.

dawyldthing

I'd pay the mortgage off. I did mine last year and it was and still is the best feeling ever a year om