Inheritance and Paying off Tracker Mortgage

[Moneypit]

Hi, we've a tracker mortgage with Pepper (was Danske), balance of €112,000 with 11 years left on 5% currently. We've come into a little bit of inheritance money (€100,000) husband is self employed, not great with money (i.e. would squander it quite easily if let and no pension, would it make best sense for us to put that off the mortgage?
Many thanks in advance.

 

[Pinoy adventure]

5% interest saved straight away if you did

 

[Brendan Burgess]

Yes, it makes sense to clear the mortgage.

And it makes sense doubly so if it would be squandered otherwise.

If you were both financially responsible and paying 40% tax, it might make sense to contribute to a pension fund.

Brendan

 

[Moneypit]

Thank you both.

 

[Marsha25]

I'd advise paying it off the mortgage. Your husband could then start his pension fund using the money he has been paying towards the monthly mortgage bill.

 

[Bronte]

I'd advise paying it off the mortgage. Your husband could then start his pension fund using the money he has been paying towards the monthly mortgage bill.

Doesn't sound like he will do that. So better to get a better mortgage rate and put the money away in a deposit account or put into a pension.

 

[Homepayer]

Doesn't sound like he will do that. So better to get a better mortgage rate and put the money away in a deposit account or put into a pension.

No it sounds like the husband will buy a boat or a horse. Pay off the mortgage or the money will disappear.

 

[Brendan Burgess]

Clearing the mortgage is good. That means that you own your house. If you blow money on other stuff after that, it won't matter as much.

Brendan