WWYD?

[Thingsthatgo]

We have a mortgage of £215k coming up for renewal next year. At the moment it's on a very low rate and costs £1k a month.
We have an income of around £5k after tax, and put around £1k into savings each month. We are currently doing up our house slowly, trying to save for each bit as we go.
This year we shall be given £100k inheritance and have £70k in savings.
I am tempted to just put as much as we can into the mortgage when it comes up for renewal and then start saving again. (We don't have to worry too much about emergencies as DH's parents would bail us out if necessary).
WWYD? Is an offset mortgage a possibility, or would we need the whole £215k to offset? What are the advantages?
Pensions are good, especially DH's, and we are not looking to add to those right now. 2 DCs who don't cost loads at the moment, but will hopefully be going to university within the next 10 years.

If it was me, I would pay the money off the mortgage. You can then start saving again with a larger disposable income. It’s a lovely position to be in. Enjoy it.

Any spare money you have now, save it, as the rate will be much better than paying off the mortgage.

Do the same comparison when you get a new mortgage deal. It could well be that savings rates will still be comparable, so worth keeping some back in savings, so you have an emergency fund that's not tied up in the mortgage and earning as much interest as the mortgage is costing. But watch out for LTV rates - you can get a lower interest rate if you go below 60/80% LTV so worth doing if possible.

Any time I've looked, offset mortgages have been more expensive than standard mortgages so not really worth it.

Also with a £215k mortgage balance and potentially up to £170k to pay off on renewal, you're potentially going to be looking for a mortgage below lender minimums, so you may find it's better to borrow £50/60k to get the best choice of lenders as some of them might not be willing to lend you a smaller amount - at this level also look at the impact of fees carefully - it's probably not worth paying more than a very trivial arrangement fee so look for a fee free deal.

Thank you both. Yes, the mortgage feels huge at the moment, and without this money the repayments would go up a lot. Getting the mortgage down to under £100k will be a huge relief.