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Imperial1847
Posts: 105
Forumite
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.
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.
0
Comments
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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.0 -
That was sort of the way I was thinking, thank you.0
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