Inherited £100k - game changer

Voyager2002

I think that you need to see both a mortgage broker and an IFA before making any firm decisions...

On the mortgage: the extra 100K means that you now own a larger proportion of your home than previously, so are seen as a lower risk by lenders, and so better deals may become available to you. Once you know what is possible then you will be in a better position to make decisions about the length of the mortgage: if you were offered something at (say) half a per cent interest per annum then it would make sense to keep this deal for as long as possible, since any spare cash would be better invested elsewhere than repaying such a cheap mortgage.

Alternatively, putting money into a pension scheme is attractive because of the uplift from tax, but bear in mind that any money that you withdraw from a pension scheme may be taxable. This needs careful planning: ideally arrange things so that any big withdrawals from a pension scheme come during a tax year when you are not receiving a salary.