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AIBU?

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Original poster

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

133 replies

Juppc · 24/06/2024 14:52

I’ve been given 70k which is around a third of my mortgage debt. If I paid it down on the mortgage my repayments would immediately reduce by 200 a month and obviously I would have a much smaller mortgage so be paying less interest.

however, I am a single parent, late thirties, to one child and have no plans to ever meet anyone again. This 70k represents 2.5 years of security to me for all expenses. I am currently highly paid but no idea when that could change. If I spent the 70k I would have only 8k left in savings and I am only currently able to save 400 a month. I’d never have 70k again.

I think I am being sensible? Am I?!

OP posts:
BleachedJumper · 24/06/2024 14:58

What are your current mortgage terms and conditions in regards to early payments/rates and length of current deal?

Moveoverdarlin · 24/06/2024 14:57

I would put 50k in to your mortgage at least. Yes, you might save only £200 a month but it’ll wipe years off your mortgage and hence thousands in interest. Put the other £20k in to an ISA. Maybe keep back a couple of grand for a shopping spree, holiday but I would deffo get that mortgage down.

millyv · 24/06/2024 14:56

Outnumbered99 · 24/06/2024 14:55

You probably can't make such a large overpayment anyway without incurring charges. I would do a bit of both, perhaps invest for now and at next remortgage pay a chunk off, keeping a chunk in savings/investments.

Yes, this is a good point, we have just remortgaged and can only do a 10% overpayment per year.

Original poster
Juppc · 24/06/2024 14:55

I have no idea about investments or where to start unfortunately

OP posts:
Outnumbered99 · 24/06/2024 14:55

You probably can't make such a large overpayment anyway without incurring charges. I would do a bit of both, perhaps invest for now and at next remortgage pay a chunk off, keeping a chunk in savings/investments.

millyv · 24/06/2024 14:55

You are best off looking at a high interest account for the 70K or speaking to your provider regarding an offset mortgage, then interest earned will reduce your mortgage. It's a tricky one, I'm not sure I would pay all off at the moment. I think you are best speaking to some one qualified.

FoxSwiss · 24/06/2024 14:54

I’d pay 60k off the mortgage and then keep the 10k for savings to boast them to nearly 20k.

ByCupidStunt · 24/06/2024 14:53

Yes, very.

You can get 8% on that if you tie it up for 5 years.