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.

One of the guys at the office wasn’t in on Friday when we had the discussion so we asked him this morning what he would do. Turns out he has £80k in the bank and a mortgage for £50k. I asked why he didn’t just pay off his mortgage with the savings and he said it was because he wanted to make sure he had money in case his kids decide to go to uni and to help them get set up in life. I said he should pay off the mortgage and put the monthly payments to savings instead then it would build back up again. He wasn’t so sure but I think he’s going to be worse off doing what he is doing.

Let’s say £70000 on house, invest £15000, spend £15000. New(ish) car probably (or sink a grand or so into the one I have), that carbon remedy 29 that Polished Suspension are trying to sell, and a bunch of epic holidays.

Question #2:
if you had £40k mortgage left and wanted to buy a second flat at around £300k to be an evil landlord), would you spend the £100k you had in savings by

1. clearing the current mortgage. Would you still be able to use the 1st flat for collateral and get a good 65% mortgage on a 2nd?

2. putting the £100k on a deposit and so have two mortgages, the current £40k one and a 2nd for £200k?

Asking for a friend.

edit: I my friend has no kids to send to Uni

Boarding school for both the kids. Wretched things ruining every hour of the day.

THink of all that free time I’d be buying. Bargain.

I halved the mortgage, bought a decent car, new road bike, new shed with wiring, revamped the inside of the house, got the hardtail serviced, bought a nice vintage watch, new wardrobe and kept 20k as JIC money.

Clear debts/reduce mortgage

Then reduce my salary by buying more holiday time and increasing pension contributions.

New XC race bike
Maybe new Enduro bike
New frame for the road bike that doesn’t creak and can take bigger tyres
Replace commuter with better ‘gravel’ bike

” I said he should pay off the mortgage and put the monthly payments to savings instead then it would build back up again. He wasn’t so sure but I think he’s going to be worse off doing what he is doing.”

Depends on his interest rate…… on both his mortgage and savings/investments.

First instinct would be to pay off mortgage, buy a Porsche and book a luxury ski holiday…

After pondering it for a while I’d be thinking how I could make an ongoing, positive change to the quality of life for me and the family, in which case it might be more along the lines of working a shorter week. I’d also take a long hard look at my retirement planning.

That said, when the kids are bigger/older this house is going to feel small and noisy, so maybe a house move would be on the cards…?

In truth, I don’t know the answer to the OP’s question 😆

We’ve been considering moving further out of London to allow us to have less/no mortgage & a better quality of life.

The £100k would be spent on making that happen sooner.

50K paid off the mortgage, and then get a better monthly rate

40k on Kitchen / extension

10k on a couple of holidays

This thread would be more interesting if it was “£100k – I would..” *insert the worst thing you would be prepared to do to get the cash*

Pay 50k off the mortgage, keep same payment level and reduce term.
Not tell the wife how much money was left and just keep it and be Mr generous on treats for her and kids and it would just be nice to be able to buy bike bits and random tat and not worry about the money.

i’d sink half into the mortgage, and half to buy a few acres of paddock/woodland for the local dirt-jumpers to go nuts in.

Pay the mortgage off then wonder what I could spunk the extra £1400 a month it would leave me on 😀

70k would pay our mortgage off and we could ten afford to work 4 day weeks and still be better off, that’s a no brainier.
I could then buy a nice camper van and maybe set up as a mobile mechanic with the change.
100k would be all I’d need to change out lives forever. That said, we’ll get there without it, just not instantly.

10% to charity, then the rest would finish our house renovation off, pay off most of the mortgage leaving around £20k left to pay off, which would be very much ok with me!

3 options:
– pay te mortgage off, pay for the extension and doing up the house and pay off our debts
– sell the house, and add whatever is left after the mortgage has been cleared and buy a house outright…if there’s any money left pay off other debts
– use 50k to pay off bulk of the mortgage. spend 20k doing up/extending the house, pay our debts off, buy me a new bike…or 2, go on a nice holiday, then stick the rest in the bank as a rainy day fund

Spending an imaginary 100k is much easier than spending an actual 100k.

spending an imaginary 100k is much easier than spending an actual 100k.

It really isn’t. If anything it’s easier, as people are trying to sell you stuff if you actually have the money…

Ok, save 100k and you’ll not want to let lumps go without some serious consideration.

I’d be paralysed by indecision and fear of failing to make the most of it so I’d likely just leave it in a savings account where its value would be gradually eroded by low interest rates and inflation.

Spending an imaginary 100k is much easier than spending an actual 100k.

You’ve been watching Brewsters Millions!

Remainder of mortage and 2 x student loans (kids) should leave me just enough for a can of coke but no hooker. Easy.

I’d buy a new caravan too I think but not a new car

joeydeacon – Member

This thread would be more interesting if it was “£100k – I would..” *insert the worst thing you would be prepared to do to get the cash*

I’d fellate a smurf

Clear my debts (Excluding mortgage).

Buy a couple of nice bikes (XC race, enduro and perhaps a DH bike) and a nice impractical car.

Invest the rest to go towards the kids when they leave home (uni or otherwise). I have had quite good luck so far with investments (pension)

Start the ultimate coke ‘n’ hookers thread, with pictures.

What a year month week weekend that would be.

I’d probably just stick it in the Pension….

Mortgage, it may be boring but I really don’t like having one.

Northwind – Member

joeydeacon – Member

This thread would be more interesting if it was “£100k – I would..” *insert the worst thing you would be prepared to do to get the cash*

I’d fellate a smurf

Any advances on the fellatio of a smurf for the grand prize of 100k?!

I’d get the scratch buffed out of the car door. Didn’t even leave a note. 🙄
The rest would go on a holiday home in the sun.

Give it to my daughter, towards buying a house.

No-one wants to spend any of their money on making the world better for others?

#selfishtrackworld

oldnpastit – Member

No-one wants to spend any of their money on making the world better for others?

Gotta love that you posted this straight after someone who’d give it all to their daughter, timing is everything.

sell up and buy somewhere bigger

No-one wants to spend any of their money on making the world better for others?

#selfishtrackworld
Give the man a fish and he’ll eat for a day.
Help a man through immigration exams and he’ll take a job on the trawlers and have fish for life.
Time is more valuable than money alone.