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What to do..?

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
3 replies 625 views
giddy11giddy11 Forumite
4 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi, New to the forum posting wise but have used it for a long time looking for info etc. I know there are many clued up people here and can offer some sound advice.

Basically i'm in quite a good situation regarding finance. Albeit through a sad set of circumstances.

There is an oustanding mortgage of £98k and I have inherited £100k. So in theory the logical situation is to pay off the mortgage which a lot of people strive to do.

My dilemma is that do i want to pay off this mortgage? Or keep some money aside for either house renovations, holidays etc (plan to go to Australia for 3 weeks Xmas this year).

In my head I think i want to keep a small mortgage of £15k-£20k (house worth c. £125k) and pay that off over a period of 10-15 years.Maybe over-pay per month to reduce payments after i see how things are.
I have a steady decently paid job. Is the mortgage route the best option here? Any other suggestions?

Replies

  • juststuff123juststuff123 Forumite
    278 Posts
    Seventh Anniversary 100 Posts Photogenic Mortgage-free Glee!
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    Hi there, Sorry for your loss.

    I'm gonna give you the emotional view: No need to make any hasty decisions. You don't have to march down to the bank tomorrow with a suitcase full of cash. Try overpaying the mortgage by a few thousand pounds see how you feel. You might feel you want to pay a bit more for the psychological boost, you may feel more comfortable having easy access to your money (a safety net). Just drip feed the money until if feels right for you.
    NEW GOAL:- £200k in Savings be March 2024
    SAVINGS: – £151,635
    COMPLETE GOALS - Debt Free, Mortgage Free, £150k Savings
    Save 12k in 2021 #53 £10,888 / £15,000
  • TheShapeTheShape Forumite
    1.7K Posts
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
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    Mortgages are some of the cheapest borrowing available so there are often better things you can do with your money than pay-off a mortgage.

    I entered 2016 with intentions of heavily overpaying my mortgage and came to MSE for some ideas. Instead I found the savings and investments and the budgeting and bank accounts threads on this forum. Lot's of ideas there re savings, investments, pensions etc.

    I've found some great ways to make the money I have (not a huge amount) work for me and overpaying the mortgage is not currently a focus.

    Have a look. Paying off some of the mortgage might be the right answer for you but it might not be the only thing to do with your money.
  • Sorry i should have elaborated a little more.
    Basically the mortgage was in my wife's name. So i have to sort out a new one (or pay it off). So literally trying to weigh up the best options to get best value whilst keeping some money in the bank.
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