If you have come into a lot of money one of your first thoughts may have been to pay off your mortgage as soon as you can – but is that the best decision?

Windfalls do not come around very often, and when they do come along, you have to be very careful about how you spend your money. So paying off your mortgage would seem like a really sensible idea? No more monthly payments, 100% security for life and a definite asset that can be passed on to your family. It’s the ultimate dream, but is it the right choice for your lump sum?

Because if you pay off your mortgage, and your home depreciates, you have lost some of your money. Also, what if something happens and you need money fast? It will take time to seek out another mortgage and unlock some of the cash again. Paying off your mortgage means locking your money into your home.

However there is an alternative. By offsetting a lump sum against your mortgage, you in affect pay off the debt, but you keep your money close to hand. For example, if you offset enough against your mortgage you may end up paying very, very little for your mortgage each month. But the money doesn’t depreciate, it is always accessible and you are still 100% safe and secure.

There is no right answer when it comes to investing money with your mortgage. It might not be the right choice for everyone, but then again it might be a great way of securing your money and reducing your costs.

The only person who can give you the right answer is a fully qualified mortgage adviser. They will be able to point you in the right direction when it comes to financial products and they will do it by assessing you first. Then they fit the finances round your needs.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.