What would you do?

[Daughteroughter]

I am sole earner, reasonable high slary have good pension associated with work. DH has just inherited 100k and we are planning to move house. Mortgage 190k good deal. We have no savings, have worked hard to sort previous debt, am trying to work out what to do with 100k and also whether to come out of pension scheme and then invest savings else where ...what would you do?

Personally I might pay at least 75k off the mortgage - a remaining mortgage of around £115 is still A LOT to pay back after all. The £25k you'd have remaining as liquid assets - I'd look at the finance pages to decide how best to invest.
Alternatively I'd make that £100k work by buying a flat with the £100k, renting it out and upping my mortgage payments on my main home using some of the rental income.
I wouldn't take on a mortgage for a flat priced above £100k though - your existing mortgage debt is quite high enough, and things can change. Don't overstretch.
What a lovely dilemma to face!

I'd sink 80-90% of it into the mortgage because, however good a deal it is, you are unlikely to get the same interest in a savings plan. You could either reduce your monthly payments and use the spare cash generated to build up your savings or you could keep your monthly payments the same and bring forward the finishing date by several years. Put the other 10-20% into tax-free savings ie. Cash ISAs and consider something like a tracker fund if you don't mind taking a risk. If your work-related pension involves an employer contribution think very long and very hard before pulling out and also get professional advice. There are no tax breaks on savings.

don't come out of the pension scheme.

savings rates are terrible and will be for a few more years. Have six months of expenses handy but he rest needs to go elsewhere. Making a big hole in the mortgage seems a good idea.

Thanks all - v helpful

If your reasonably high salary means you pay 40% tax on any of it, do you claim back the additional tax relief on any personal contributions to your pension?