Too much money & No Idea!

busy_b

Only joking with that heading but seriously need advice.
We are by no means loaded and every penny counts as we are just ticking along with a small business at the moment. However, we have sold our business premises and now have approx £48,000.00 to either save, invest or use to pay off our mortgage of approx £36,000.00. (Property is worth approx £250,000.)
We have no other loans or debts and as well as our small business, we have 3 Buy to Let Properties (Total value at £370,000 with mortgages totalling £128,000) and ISA’s to the value of approx £20,000.
The dilemma is this:-
Do we just pay off our mortgage, keep the ISA’s running and put the remaining 12k in a savings account
OR
Do we take out an offset mortgage against our savings or ISA’s if that’s possible
OR
As it’s a relatively low mortgage against the value of the property, do we change our straight repayment to a better deal and keep it running and place the 48k in a savings account.
We have already wasted a year pondering and the 48k has earned a mere 4% interest, whilst our Mortgage is a straight repayment with about 12 years to run and obviously costing us a lot more in interest.
Please Help – I’m new to all this money stuff!

kavomix

im no expert, but the first thing that stands out from what you mentioned is that you earnt 4% on your savings. If that's all your going to be earning then paying off the mortgage is the better option. There are far better savings accounts out there paying higher rates.

But even still with the higher rate accounts I would say put most of the money towards the mortgage while keeping aside a few thousand just in case you run into difficulties.

sandy2_2

I think I'd pay off most of the mortgage. as I was always told that even if there's a small amount outstanding with the mortgage company it's always easire to remortgage or borrow money should the need arise