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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!!
8k on a motorbike (CCM GP450 since you asked)
10k tucked away for a rainy rest of the mortgage
Pay the mortgage off and drop to a 3 day week.
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!
Sell the house and go mortgage free elsewhere in the country with the combined funds.
Coke
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Hookers
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.
Retire.
That amount would almost pay off our mortgage, leaving us with 14k to pay and no other debts.
The rest of our life would be a lot easier as a result.
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
In laws are selling their place in corsica for that sort of money, so buy that... or more likely pay down remaining mortgage & invest in pension 🙁
Fireworks.
Buy another BTL and resign .
Then do consultancy work within my feild maybe 1 or 2 days a week.
Im not greedy and dont need alot cash to live on.
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
Clear whats left of the mortgage here so the kids are clear in that house and then buy another place in france and still have change to renovate it.
I'd buy a Binners of my very own.
I'd retire the next day. thats nearly as much as I would earn between now and my retirement
CFH - too high maintenance and prone to breaking down.
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.
I'd add it to my other savings .
Rent out the gaff
And head east on my bike.
Would you worry about not having money left over to pay for the kids to go to uni? Or would you just save the extra each month to pay for it?
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!
hammyuk - Member
CFH - too high maintenance and prone to breaking down.
Always the way with older classics.
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.
Pay off the mortgage, and then go 4 days a week.
Holiday, mortgage, pension. In that order.
Stick it all on black
No...red.
Pay off the mortgage AKA 'bank of mum' the rest would go into the nice holidays till it ran out fund.
choppersquad - Member
Stick it all on black
No...red.
If you're indecisive why not stick £50k on red the rest on black. What could go wrong...
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.
With my luck it would land on zero.
I'd pay a big chunk off the mortgage with say £75000. Nice family holiday, maybe a newish car and bank rest.
Oh and a new bike.
Mostly invest it but use some to get the house tarted up a bit.
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).
Didn't we do this a few months ago?
Deposit towards a better house and helicopter lessons...
It might help resolve questions of my daughter's schooling....
Half in mortgage, new car, new bike, holiday and leftovers in a rainy day fund
Sell house and add to the £100k to buy a bigger place outright.
Or
Pay off mortgage, do some home improvements and ask for reduced hrs at work.
£50k on an £80k btl flat that pays for itself with a small profit (even after mortgage payments etc)
'Hello, Santa Cruz? Yes, three please." Among others.
Luxurious holidays in whistler
Plenty of booze
Nice clothes
Treat family and friends.
Is what I did when I inherited a similar amount. Still got the Santa Cruzes, the flat and the clothes...
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.
Kept driving my 7yr old Mondeo.
Yep. As much as I don't like my mondeo very much I think I would do the same. I'd rather spend it on other things, like pay off the only debt we have which is the mortgage.
First instinct is take a good chunk out of the mortgage, but I think the slightly wiser move for us would be to pop it in a separate account, earning meagre interest, but pay the mortgage directly from it for about a decade.
Frees up our existing income a bit and allows for more flexibility, we could save, have a buffer for changes in jobs etc and the balance of the 100k would be available for emergencies for a while at least.
With interest rates so low paying off the mortgage, while nice, wouldn't be top of the list. Maybe pay off some to drop the ltv. Should be enough for a small btl that'll just about cover the mortgage. Once that's paid off the money keeps coming in so better than paying off outright, and you still effectively have the money. You do need to become an evil landlord, though.
I'd just pay off debts and tuck the rest away for the boy. Hardly exciting, but even with 100k deposit, you'd still need 1/4 million quid mortgage to own the 2-bed house we rent!
I'm a good bit younger than the average STW'er so, £5K on a couple of bikes, £5k for the wife to spend (the eternity ring she likes is that price), £90k invested with interest re-invested. No change in lifestyle but enough to make a difference a few years down the line.