That depends on your overall financial situation.
Lets assume that you get a job soon, at a lower salary.
How much is your mortgage and how ling does it have left to run ?
Are you in negative equity ?
Will the house fulfil your needs for may years or will you want/need to move in the next number of years maybe because of an expanding family ?
Do you currently have any savings in case of emergency (car breaks down, unexpected repair job in the house) ?
Do you have any pension provision ?
If you use the entire amount to pay a lump sum off your mortgage, you will save money in the long term, either will a shorter mortage term, or smaller monthly payments, but it might be difficult to get access to these savings, if you ever need the money.