41m and 43f with £290k mortgage shortly about to receive £340k inheritance but annoyingly not before we're scheduled to move house so can't just pay off the mortgage before we move. Is it best to sit on the money until the end of the fixed rate or clear mortgage ASAP & take the £15k early clear hit?
Hi UKPF, hopefully you'll be able to shed some insight into what steps we should take next.
My wife and I are shortly about to come into approx £250k inheritance and we have already £90k from when my dad died and my mom sold the family home and gave my brother and I £100k each.
We are about to move and port our mortgage which is £291k at 2.75% and the fixed rate element is due to end October 27. Monthly payment is £1187. If we reduce our balance or pay it off there is a £15k early repayment charge (5% of the balance) so want to avoid that if possible. Fly in the ointment is we won't get the £250k likely before we move so still need to faff with the mortgage in the meantime.
By porting the mortgage the broker said they wouldn't lend us the money for less than 5 years but also then pertained to the fact that in October 27 we could make a large overpayment at the point of securing a new deal.
What stops me paying £280k off the mortgage in October 27 and reducing the term to just a few months left? Why can't I just clear it? Is this the sensible thing to do with the money? What should I do with the money in the meantime?
Our current money is split into 2 ISAs one with £40k one with £30k and £20k of premium bonds. Neither have had anything put in this year. Should I make a 10% overpayment now and then another 10% overpayment in October as I can do every year but currently don't?
I don't want it to just sit there and do not much but I also don't want to risk what our parents spent their lives saving so we could be mortgage free at 41.
Were really in a pickle. Any advice would be greatly received.