SHOULD I USE A £75,000 INHERITANCE TO PAY OFF THE MORTGAGE? THE GUARDIAN

I am wondering whether to keep some of the money in savings to help cover extra costs if we move.

Q I’m due to inherit about £75,000 and I’d like some advice on what best to do with it. We have about £85,000 left on our mortgage. We have been considering moving house for the past couple of years but the houses we have been looking at are a bit of a jump from where we are now.

Our current house would sell for between £250,000 and £270,000 but the ones we are looking at in the area we want to be in are on the market for about £400,000. We can overpay on our fixed-rate mortgage – which is due to come to an end in November 2025 – and have no restrictions to how much we can pay off.

My question is, do I use most of the money to pay off the current mortgage? Will doing that that help get a better rate if we do move house and for when we need to remortgage? What if the value of our house goes down in this time? Or do I keep some of it in savings as if we do move to a new house it will help cover some of the extra costs (buying new furniture and moving costs)?

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