To think I’m not crazy for not paying this off?

I'd keep it in the bank to give me a feeling of security. Long run, yes may cost more but it'd be good to see it sitting there. Put in premium bonds and win a bit on top!

We put it in premium bonds after spending a bit of the garden. However our mortgage rate is very low.

Where are you due to renew the mortgage? Look at an Offset mortgage

Turn the 70k into more than 70k should be your strategy. The mortgage is one thing but personally I’d spread it (40k into 2 ISAa, one now, one in April so you don’t pay tax on the interest), a tiny bit in a rainy day account. (Say 5-10k) and the rest on the mortgage if your account allows overpayment. If you can’t overpay the mortgage then I’d put the remainder into premium bonds (which you can access immediately if you suddenly needed to).

I'd stick it into a high interest account rather than paying off the mortgage - there are good rates for savers at the moment. That way you make money off it AND can still pay your mortgage off in the future.

I was faced with a similar dilemma after my husband died. I put most of it into my mortgage but kept some as a cushion. The reality was, despite my best intentions, that cushion got spent – some worthy purchases but some was frittered (to be fair I was grieving and traumatised). If I had my time again I'd stick it all into the house (other than booking a holiday...)

What's the interest rate on your mortgage? If you're still on a good (old) deal, you might find that you would be better to put the whole amount in some sort of savings with a decent rate of return, rather than using it to pay the mortgage.

For example, if your mortgage is on a 2.5% rate for another 18 months you'd be better off putting the £70k in a 18 month fixed term deposit account with Metro Bank for 3.5% interest rate.

In any event, I don't think I'd put all of it on the mortgage if you want more savings to hand. What "rainy day" savings would be useful to you to have? 6 months earnings? Keep enough to have that on hand, and the rest to put on the mortgage.

If you paid off the £70k your mortgage debt would be immediately reduced and you’ve got to pay it off at some point (I presume that’s your plan).

after that you could pay the now spare £200 into a savings account so you are saving £600 a month to build a bigger cushion in case you had job loss etc or continue saving £400 and overpay your mortgage by £200 every month. You will be amazing how many years and interest saving this will take off your mortgage. Use an online calculator to show you how quickly that will reduce it

I’d work out what the cost of 6-12 months full expenses would be. Keep that aside.
Then decide whether pension contributions or mortgage repayments are your personal priority and use the rest for one or both of those

But think about knowing that the roof over your head is all yours!

I do understand the desire to have cash that’s accessible. What’s your income? You don’t have to say a figure, but are you on the standard rate income tax/higher rate? Are you close to jumping up a threshold?

have a read of this - https://www.gov.uk/apply-tax-free-interest-on-savings

Ok so I’d do the 30. Then keep the rest and see how you feel. I’ve been a single parent so I do get it. ( never had 70k in the bank though!)

I'd split £30k mortgage; £20K pension; £20K emergency savings in a high interest account if it were me. Whatever you do, do not leave it in an account where you can access it easily or you'll dip into it here, there and everywhere and before you know it, it will be gone.

Personally I'd rather have 70k in the bank than £200 less mortgage to pay as I'd feel more secure that way. But it really comes down to interest rates whether it makes financial sense to pay some mortgage off - what is your mortgage rate and can you get a savings rate to beat it?

Even if you aren't interested in investments etc , you can still get no risk saving accounts where you'd get 4 plus %. I'd start with ISAs.

Not sure where the OP can get 8% on money tied up for 5 years. She says she is a high earner so would have to pay tax on the interest above £1000 per year. Money in an ISA (£20k is allowed per year) is tax free.

Cash > assets.

I’d put £20k in a S&S isa in a global tracker. Then the same again in April.

The rest across high interest accounts for now.

Putting it in your pension would immediately add 20%. Obviously couldn't access it till you're 57 though

check your early repayment charge - pay off the maximum this year, and next, until you're ready to remortgage, then use half of what's left to reduce your mortgage.

then put the other half away as a reserve, but accessible if needed

What's your pension like? You will get a 25% tax boost straight off for putting it in there (although may be above your yearly contribution limit). Returns likely better than the interest rate on your mortgage too.

See the money saving expert site...

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

There's some good advice on there.

It kind of depends on your interest payments. But there are calculators on line which show how much less you'd pay in interest on the lifetime of your mortgage by overpaying. You need to think how much you can over pay in the terms and conditions of your mortgage, when you are remortgaging etc etc.

It would make no sense for me as we remortgaged at a really good time and are paying a really low interest rate, our mortgage is nearly finished and we'd get far more in interest with the money in the bank.

it could save you thousands over the life of your mortgage though.

I'd keep some back whatever for 'emergency' savings. And treat yourself to something nice with a bit.

Depends on your current mortgage rate. if it's less than you could generate in interest then save the lot for now. If your mortgage interest rate is higher then what you could achieve on savings/ investment then it makes sense to pay off some of the mortgage

Do a google search for independent financial advisors in your area. Or speak to your mortgage provider to see if they have a solution - an offset might wipe a lot of interest off your mortgage and years.

Yes, i would need to know how much you could overpay this year without interest implications.

I would probably do a half and half at least, get it in a high interest account.