Paying this off the mortgage makes sense yes?

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We are looking to buy and sell (upsize) this season and ours has just gone on the market (had a viewing half hour ago and one tomorrow!)

My mum wishes to pass on some inheritance from the sale of my grans flat to a ‘small’ amount of £10K to us - and we’ve planned to use it for paying EA, removals, solicitors etc.

But is it not quite the same to simply use it to overpay a chunk off our current mortgage? Swings and roundabouts surely - as when current mortgage is redeemed instead of X we will need to pay back X minus 10k? And saves some interest in these few months or however long it takes to sell?

we already overpay heftily monthly and I did call bank to check that this wouldn’t take us over the 10% allowance (it won’t), but just wanted some opinions on it before doing it! It feels better to have it sitting in a savings account for 3 months or whatever than to see it disappear into the house but rationally it’s the exact same isn’t it? No other cash flow issues by the way with any other payments needing making upfront ..

Any thoughts?

Use it to pay £10k off the mortgage. Your circumstances also come into play.

If you’re not married, get a solicitor to ring fence the £10k deposit so you get it back if you split.

If you’re a SAHM or a low earner compared to your spouse then I’d also officially ring fence that £10k deposit.

In both of the above you’re in a much more vulnerable position than your partner/DH so makes sense to have a little security in place.

What's your interest rate? Anyone still on an old fix could profit by saving the money instead of overpaying the mortgage.

Eg £10k off a mortgage charging 1% saves £100a year in interest, but put it in a 5% savings account for a year and it will earn £500. You can always move the money onto the mortgage later on.

Hiya thanks, we are married, FT working professionals both of us, and I out earn DH by about 20 k a year. So those circs dont apply here. Thinking of paying it off the mortgage...

This woiuld make sense except that we need the money for the deposit for this particular purchase transaction so having it after 1 year doesnt really offer what we need now to meet a specific LTV bracket margin.