What would you do with this money?

[IVFNewbie]

Hi hive mind

What would you do in our situation?

We're married, no kids, I'm 54, wife is 49. Have a small dog. No kids. House is worth 550k ish, we have 50k left in mortgage. We have 130k in poor return account. No other savings. Pension pot around 75k or so. Not retiring any time soon.

We talked about getting a home extension (costing about 175k ish) but not really sure when- prob next year now if at all.

Should we -
Max out premium bonds? Other kind of savings? ISA?
Pay off mortgage?
Do both?
Borrow a bit more and get the extension?
Something else?

I am awful with money and have no idea.

Cheers!

I'd agree with this. Once your mortgage is paid off it gives you options with the money you save each month.

It’s the maximum amount the government protects in the event the bank collapses or similar.

thanks!

However, the bank must be one that is protected by the FSCS scheme .

And it applies to each bank as a whole so you wouldn’t be protected if you had £85 in HSBC and £85k in First Direct, for example, because FD is a subsidiary HSBC. So you would only be covered for one lot of £85k.