Morgage free??

heddwch

There are four years left on a morgage of £40,000 plus an endowment. I pay £260 a month. I have inherited twice that much. Do I keep paying the morgage and invest the inheritance. Or pay off the morgage and invest some of the remainder. Thank you for your help.

Welshlassie

It depends what your priorities are.

What would do if you were mortgage free?
Do you what an income from the inheritance?
Do you have investments for your retirement, or would the inheritance help with this?
Do you manage the mortgage payments ok, or would not having them every month make a big difference to your life?

I personally would pay off the mortgage and invest the majority of the rest, using a little for a holiday, but ultimately it is your decision and only you can make it depending on your circumstances.

Jonbvn

Read MSE Martin's article on this:

http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

Generally speaking it is better to pay off the mortgage than save. However, ISA's break break the rule.

Nala

I, personally, would pay off the mortgage. Invest the maximum in your ISAs, have a holiday and save the rest in the best e-saver. You'll also be freeing up £260 each month to chuck into the savings.