Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • topley4718
    • By topley4718 12th Mar 18, 9:08 AM
    • 15Posts
    • 2Thanks
    Best Course Of Action
    • #1
    • 12th Mar 18, 9:08 AM
    Best Course Of Action 12th Mar 18 at 9:08 AM
    I am set to inherit 10k and would like to pay some off my current mortgage, owe approx. 30k with 9yrs left to run. My question is do I pay off the lump sum and reduce the years left on the mortgage (I assume it will knock around 3yrs off) or do I pay off the lump sum reduce the monthly payment but keep paying for the remaining 9yrs.

    Another factor into the mix is that we need a few home improvements kitchen/bathroom did we leave the mortgage as it is and use the cash to get the work done?

    Any advice or alternative suggestions would be appreciated.
Page 1
    • AnotherJoe
    • By AnotherJoe 12th Mar 18, 10:26 AM
    • 9,449 Posts
    • 10,452 Thanks
    • #2
    • 12th Mar 18, 10:26 AM
    • #2
    • 12th Mar 18, 10:26 AM
    If your mortgage is an average rate, say around 2% for example, then its less than inflation which is eating away at it every year so i wouldn't be in a rush to pay it off, indeed i wouldn't pay it off.
    If you pay that 10k off in 9 years time for example it will only be about 8,000 in todays money. Why pay 10k now when you can pay 8k later?

    If you use it on home improvements those are things you'll get the benefit of for the next 9 years. You cant put a monetary value on those but arent they worth more to you than saving about 16 a month in interest? Spend it on those.
    • topley4718
    • By topley4718 12th Mar 18, 10:33 AM
    • 15 Posts
    • 2 Thanks
    • #3
    • 12th Mar 18, 10:33 AM
    • #3
    • 12th Mar 18, 10:33 AM
    That was sort of the way I was thinking, thank you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

897Posts Today

6,725Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin