We were talking in our office the other day about what you would do if you won £100k on the lottery. Obviously this isn’t a jackpot winning amount of money so no cruise ships for us. I said I’d pay off the mortgage but my colleagues called me silly. I argued that if I didn’t pay £400 per month on my mortgage it would allow me to do more with the money I earn than keeping that money and spending a lot on a really nice car or extension to the house or whatever. And by that token it woukd be life changing.
What would you do with your £100k?
To be clear, this is all hypothetical, I haven’t even won £10 on the lottery!!
I think you’re bang on, pay off the mortgage, breathe a massive sigh of relief and feel the stress leave your body. Then as you say enjoy the extra £400 a month you find yourself with!
Me? I’d buy another flat to rent out, one step closer to retirement!
Even in my 50’s and with good pension provisions it’s not really enough to give up work, so I’d spunk it on a new car and a couple of holidays with the rest.
It depends on the performance of your investment compared to the current mortgage rate you’re on at the moment but at the moment there are investment returns that are beating a mortgage especially as the BoE base rate isn’t going anywhere at the moment
But it depends on your circumstances and your attitude to risk. Personally I would throw it at the mortgage with some set aside for improvements to the house but that’s because i have 2 small kids and a hefty mortgage. If you have no pension then you should stick all of it into a sipp
Use as a deposit for a couple of Buy to Lets. If there were other decent investment options I would look at those but have not had much luck with the stock market
I really haven’t a clue, I’m sure it’s enough to do something really life changing with that but other than spending a few years re-training I don’t know what.
Boringly pay off a bit of debt we’ve got, stick the rest on mortgage.
No lavish holidays for flash cars for me. It would be nice to reduce our outgoings whilst young Miss Jay is still burning through £900 a month in childcare.
Wouldn’t pay off the mortgage by a long shot, but would make a £400/month dent in it, so yea, that.
Although I’d probably split it between that at paying people to finish off renovating our house (kitchen, bathroom, hallway, new en-suite, 2x bedrooms still to go!). Otherwise I’d have money but still spend every weekend working on the sodding house!
with a £250k mortgage and fairly sizeable monthly childcare bills it won’t be enough to retire on.
We’ve got a few other debts hanging around from our house extension, so I’d clear those, get a decent bit invested to cover future school trips + nasty surprises.
This should leave me about £12k to spend on a Nissan Patrol/Toyota Landcruiser so I can take the family on a few adventures.
I’d hand in my notice. Buy the place in Austria we’ve been looking for for the past 18 months. Then the OH and I would do ski seasons without working every winter. Sept-Dec and Apr-July I’d do supply teaching to beef up my winter funds. All summer hols in the mountains with the bikes too.
Well the mortgage is paid off so the smart move would be to stick it in the pension pot. However since I have only a couple of years or so to retirement I reckon I would say “sod it, pack it in now”. To be honest I’ve had enough, compounded by the security gods blacklisting forums at work (including this one).
What I did when I got a lump sum slightly over 100k was to pay off the last 18K of the mortgage leaving no other debts. Kept a few thousand in cash and invested the rest. Went on an 11 week bike tour. Went from full time work to part time. Kept driving my 7yr old Mondeo.
