Terminally ill - thoughts on paying off mortgage,

kemlynroader

Hi guys.

My wife's terminally ill. We've received the life assurance payout based on medical reports already (although nearly 9 months on, she's defying medical expert opinion and actually in very good condition right now)

So we have a lump sum available to pay off our mortgage. We're a month away from the end of a 2 year fix rate mortgage (penalty for early repayment of mortgage applies until early July) although i will pay off 10% capital payment which we're allowed to as part of the mortgage before the anniversary.

I need a sounding board and welcome your advice. Would you pay off the mortgage as soon as possible afterwards if you had the means?

Hope this all makes sense, thanks in advance for your pointers.

silvercar

Depends what other savings you have and what other expenditure you think you will have in the future.

Sorry to hear things are difficult right now.

amnblog

This is a question that is probably not best answered from the practical, technical, or mathematical view.


There is no rush and you should use the insurance funds in a way that makes you and your wife feel most comfortable at this difficult time.

minimike2

Some lenders will allow the ERC to be waived if you demonstrate the funds are from a life insurance pay out.

I would say do whatever gives your wife the most peace of mind and will allow you both to enjoy the rest of your time together.

Best wishes.

getmore4less

Lots of factor going forward but if you will be OK managing the debt later I would seriously consider staying in cash for a decent amount

The cost of borrowing with mortgage is relatively cheap.

You don't know what is round the corner and what the cash could do for you.

You could look as an offset product for more flexability.

dimbo61

Pay off the 10% and keep the rest in savings for the time being.
What you and your wife do with the money is up to you.
What interest rate are you paying, what savings rate can you get ?
Do you have any other savings, pensions debts, etc

kemlynroader

Thanks all.

Without giving exact figures away, the wife's life assurance payouts/pension pay ous etc total 3 times more than the outstanding mortgage amount. With interest rates the way that they are right now savings wise, the return wouldn't really be that brilliant (would it?) hence the consideration for paying out the mortage now.

Things is that we don't know how long the wife has left. She was told last October she'd have "months, not years" but she' s had two scans since diagnosis with no sight of the tumour. things could change very quickly though...

Bonfire_Bride

Enjoy the money, enjoy your time together. Ask her what she wants to do while she is doing well.

In the grand scheme of things...money can take a back burner (especially as you have enough (x3) to cover the mortgage.

Very sorry to hear this...

prowla

I would pay off the mortgage and use the remainder doing nice things.

kemlynroader

Had a chat with my sister last night, she suggested doing the same to be honest. Thanks for that.

MerrilyA

Sorry to hear about your situation.

I would think paying off the mortgage would be a good idea. Once that's paid off whatever you get can be used towards what you need and would like.

But you'd have to consider all the variables and see what's best for you and your family. I think it's best to do what will make you all secure and comfortable.