Hi Asian
You could invest the €130k in the stockmarket. And you might get a return over the next few years of 5% a year. You would pay an average of 40% tax on that, so you would get a net return of 3%. But the risk is huge. We are in very uncertain times. No one knows what will happen when QE is stopped. You do not want to borrow money at 3.3% to buy shares at present.
You could buy an investment property. But you already have a €480k stake in the property market. If house prices rise, you will do very well anyway. And if you are keeping your savings in case you need to move quickly to buy the house of your dreams, well it will be no use to you if it's invested in another property which might be very difficult to sell.
If you thought you might be moving in the next 12 months, maybe two years, then keeping the money on deposit might be ok. But if not, then just pay down your mortgage.
Brendan