Inheriting 100k - What would you do ?

jamesd

Nitrous, if you pay off the mortgage you'll never catch up to where you could have been if you'd invested the money instead.

You definitely shouldn't put all of the money in them but it's worth taking a look at the performance of funds like BlackRock UK Absolute Alpha, Invesco Perpetual Income, Artemis Global Growth and assorted bond funds over many years. The bond funds and equity income can provide regular income to pay the mortgage, with occasional sales to cover any difference from capital growth.

There are also some structured products around that will pay around 10% a year with a no capital loss guarantee provided the market doesn't drop by more than 50%.

With some risk of capital loss there are preference shares like the one from NatWest that pays a bit over 9% a year.

You could also use it in a pension mortgage if you're going to be 55 in a few years - contribute salary less personal allowance to a pension, get tax relief, clear the mortgage with the tax free cash and keep the remaining 3/4 as pension capital to produce an ongoing income.