lump sum - pay off remainder mortgage or save for rainy day as economy currently very wet?

I have just got a lump sum payment for £35k, almost exactly the remaining sum of my mortgage. I am 52 and work in very volatile industry (arts). I have had good 3 or 4 years (until corona) recently - though this has not at all always been the case - and have managed to pay off all my outstanding  debts apart from my mortgage. Should I pay off my mortgage? Will repaying completely affect my credit rating negatively? I currently have about 7k savings in bank to live on, but no work in foreseeable future. I am not the most money savvy, so advice most welcome. 


  • FtbDreaming
    FtbDreaming Posts: 1,118
    First Anniversary First Post Name Dropper
    With a job like yours I’d probably look at keeping it accessible incase you don’t get work. I’m assuming your monthly mortgage payment aren’t that high. 
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,700
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £174.73

    Determined to make it! 
  • Lumiona
    Lumiona Posts: 224
    First Anniversary Name Dropper First Post Photogenic
    Personally I'd save it as an income buffer due to volitile income with a view to use it to pay off the mortgage in a year / 6 months if you haven't needed it. 
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,275
    First Anniversary First Post Name Dropper I've been Money Tipped!
    What interest rate are you paying on the mortgage?  I would hedge my bets and use some of the £35k to overpay the mortgage but in view of your job security hold a good proportion back.  Are there any penalties for overpaying?  Most mortgage deals allow you to overpay by 10% so if your mortgage is £35000 you could overpay by £3500 this year and next without incurring penalties and still leave a reasonable amount accessible in case of liquidity issues. 

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.
    Link to soa:

    #1 1p savings challenge 2024 £78.75/£671.61
    #1 Save £12k in 2024 £2000/ £12000
  • there are no penalties for overpayment, believe it or not (I did check). Sounds like doing a bit of both is the sensible option. 

  • Tropically
    Tropically Posts: 427
    First Anniversary Name Dropper First Post
    Keep 12 months of living expenses and then overpay with the rest. 
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
Meet your Ambassadors


  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.6K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards