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View Full Version : What should I do with a small lump sum?



librarylady22
06-07-2012, 08:30 PM
Due to my house sale in the Uk, I have a small lump sum (5,000) should I pay it off my spanish mortgage or just keep it in my spanish bank account and continue with my monthly payments. I am not very financially aware and do not know what the current economic situation with the euro might mean for Spain. I have 8 years left on this mortgage and the payments are around 700 euros a month at the moment. Any helpful comments would be very much appreciated.

Patricia
06-14-2012, 02:35 PM
Hello librarylady22,

This is a very personal decision and I am afraid that I cannot reply from a legal perspective but just give a personal opinion.

If you used the money to pay the mortgage for instance, the bank would most probably charge you a partial cancelation commission and considering the amount is not very high, the monthly mortgage fee would not vary a lot from the current one. However, if you do not have problems with cash-flow, you can of course use that money to repay the mortgage.

Regards,

librarylady22
06-15-2012, 05:11 PM
Thank you so much for your comments, I will take them on board and have a think.