WWYD

[BubblinTrouble]

Hi all

Receiving a lump sum of around £50k. What would you do with it? Overpay mortgage? Invest? Split in two and do both?

Mortgage has 37 years left and is relatively high (£450k mark).

No other debt. Savings secured for emergencies. Don’t want to just leave it in a bank account so would like to hear what options could work.

Thanks!

With that mortgage I'd probably keep £10k as emergency funds and put the rest against the mortgage. 37 years is a long time. Be great to pay it off a bit earlier if you can.

£20k to each adults S&S ISA. £10k off the mortgage if able to overpay without penalty.
The return on investments over the long term is likely higher than the interest on mortgage. ISA keeps the money accessible, Pension would be better long term due to tax relief but locks it away. The investment could be used to pay off the mortgage when near end.

As long as you've got an emergency fund I'd put it into your pension. We had a similar amount and are gradually feeding it into our pensions through salary sacrifice. Saving £££££ on tax.

We've got a small mortgage and use the tax free lump sum to pay it off when we retire.

How lovely!

£25k in the pension to get the tax relief.
£25k on the mortgage