What to do with our windfall?

Hawkmoon69

We have inherited £100k. We have 14 years left to pay our mortgage (47k left to pay)
We are at 5.99% repayment £497/month.

Should we pay off the mortgage, or invest the cost of the mortgage somewhere else?

Albermarle

Without a lot more detail, you will not get any sensible answers. Such as 
Your age(s)
Employed ?
Other savings & investments?
Pension provision?
Any other uses for the money, or some of it?

BJV

To be honest, even if you can make a few extra pounds by investing and it is a big if personally I would pay off the mortgage and invest the rest.

Just to know that your home is fully paid. There is nothing to stop you from topping up your savings every money with your old mortgage payments. But like the previous post says it will depend on age? employed etc. 

PixelPound

If you are on 5.99% then probably pay off the mortgage as you wouldn't get much more (without thinking about tax implications).

Though if you are on a fix then bare in mind early repayment charges. 

MX5huggy

You have to be clear what you mean by Invest. 

Do you mean stocks and shares, probably in the form of funds held within a tax efficient wrapper (ISA and Pensions) or cash savings accounts that pay interest (in an ISA or not). 

Because of the high rate of interest on the mortgage (presuming there’s no penalty for doing so) I would pay it off and then make £500 a month extra pension payments. The remaining £50k I would also be looking to make large pension payments with. Your toast pension payments in any year can be up to your salary in that year. If I was a 40% tax payer I might limit my contributions to the level that gets the 40% tax relief. 

boingy

At that interest rate paying off the mortgage is a no-brainer for me, unless there are significant penalties for doing so. Check with your mortgage company about fees and about the process of paying it off.

stuhse

If you have no ambitions to move house, then pay off mortgage then shove some in your pensions (huge tax benefits and potential retire early) if applicable, or ISA if aplicable, then enjoy some of it with what ever floats your boat (meals out, weekends away, car, bike, holiday ???) along with the comfort of a cash buffer for a rainy day.

Its a great feeling having your mortgage paid off and if you suddenly find you cannot work for some reason at least you have a roof over your head.

Sg28

Im in the pay the mortgage off camp too.

Your interest rate is too high and although with a decent equity fund you should expect (or hope for) a slightly higher return its probably not worth the risk. 

Pay it off and enjoy the extra £500 per month, then decide what to do with the other £53k..

Hawkmoon69

Ah yes I'm 54. Have a good pension and we may wish to move house in the next year or two - have a large amount of equity in our property.

Sounds like paying off the mortgage is a good plan then. We'd want to keep half the windfall available for holidays and suchlike.

TiVo_Lad

Don't underestimate the impact that an extra £500/month will make to your lives, so unless you were planning something lavish going forward, I'd personally use the inheretence to pay off debts and then put the rest in the  pension. You didn't have that £100K before so you won't miss it, but you will enjoy the £500/month extra AND boosted your retirement.

Stubod

..paying off the mortgage would be a no brainer for me...then look to "invest" the money you would have used to pay the monthly mortgage into a pension, (perhaps?)..