Mortgage Advice

i havn't used this before so bear with me please!

I have a mortgage outstanding at approx €75000.00. I can keep it maintained with some difficulty however I am about to recieve a lump sum payment and could possibly manage to pay of €10000.00 but wondering if this is the best option. Im a divorced female with one dependant, there is approx 15 years left to pay and at present montly the mortgage costs €450.00 pm. Money is tight from week to week but manageable. Any advice and observations welcome..

Hi and Welcome,

I would say depends on your job.... might sound strange but these days who knows. If you lost your job could you afford to keep paying 450 a month or would the 10k be better used to cover the payments. That said if you are ok in your job then call the lending and ask however many months/years would paying 10k take off your loan.

what is your mortgage interest rate...if this is very low, then i would put the 10k into a savings account and you could use this to pay your mortgage in the event you were out of work.. very difficult to get a bank loan if out of work so best to have some security and money available for rainy day situation

As said by others it really depends on the security of your job and the rate of interest on your mortgage. You mention money is tight which suggests you dont have a rainyday fund in case something comes up.You can get up to 3% interest currently on deposits so assuming your mortgage is around 3.5 to 4% then I wuld keep it on deposit in case of unforeseen costs. As stated, your chances of getting a loan if needed of 10k would be pretty slim.

Is the €10k you are proposing the entirety of the lump sum payment or part of it? If part, is it the smaller or larger part?

Thanks to you all for the advice and the broader view, I guess my job is really the deciding factor, my contract is due for renewal in June but as we know at this point, 'you never can tell'.
I will get an estimate from the lending agency in any case.

Thank again