Lump sum - pay off mortgage, invest or both?


Registered User
Age: 31


Annual gross income from employment or profession: €50,000

Type of employment: PAYE worker

Expenditure pattern: moderate spender

Rough estimate of value of home: €350,000
Mortgage on home: €136,500 left to pay off over 27 years
Mortgage provider: Ulster Bank
Type of mortgage: Tracker

Other borrowings – None
Do you pay off your full credit card balance each month? Yes

Savings and investments: Shares €10,000. Rabo deposit account €2,000

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: None

Life insurance: Yes, Bank of Ireland

My own car is worth €27,000 at present, but recently I have been given a company car costing €200 per month in BIK

I recently received a lump sump of €50,000. My thoughts are to pay about €36,500 off my mortgage which will reduce the term by about 11 years while still maintaining my current monthly contribution. Then invest circa €10,000 in shares and put the rest on deposit with Rabo.

Additionally I have my own car which I drive a day or two every month and I love it, the company car I don't like at all. Its a good car (2007) but just not my cup of tea. Should I sell my car and invest the €27,000 somewhere? If I do sell it, I would want access to that money should I change my mind, so maybe a deposit account is the place for it!

I would appreciate feedback, guidence and opinions from you all on the above. Thanks!


If I were you, my priority would be to get out of debt. Knowing I could get my mortgage down to 60k would be a big incentive to me. You already have 12k in savings which would tide you over for half a year should you lose your job.


Registered User
I agree - Pay as much off the mortgage as possible. You'd be crazy to keep two cars on the road. Unless you can come to some arrangement with your employer, you really should sell your own car.