What Would Be The Right Thing To Do?

angela24_2

If you had £20,000 what would be the right thing to do with it?

1. Pay it towards your mortgage

2. Put towards another property to renovate and sell.

3. Put towards a childs university fees.

Annie_Fanny

Depends on the situation...can you flesh out the details a bit so I can make a more informed choice?

angela24_2

Not sure what else to tell you. If you have no other debts but you save this amount which would you put it towards?

immoral_angeluk

I would pay it off my mortgage (if I had one) as there's no guarantee your child will want to go to uni and property developing is quite difficult to be good at as you have to know exactly what you're doing budget wise and stick to it!

Eager_Elephant

The right thing to do would be depending on people's own circumstances and which you feel is best.

1. Mortgage - Obviously this is one of the best ideas as you would then end up paying less interest over the time of the mortgage. (Check out the snowball calculator to see how much you can save)

2. Obviously this will require quite a bit of additional money so unless you are part way renovating something probably not the best idea.

3. No one has to help their children through uni but some parents prefer to. Just remember the interest you would gain would probably not be more than the mortgage interest, also depends how many years til the child goes to uni.

Why not either pay some to the mortgage and try to pay this off as quick as possible and then save extra money to the uni fund or sort out an off-set mortgage so you pay less interest but the money is still there if and when needed for uni.

As always do your own research with interest rates .etc.

EE

Annie_Fanny

How much is left to pay off your mortgage?

Have you experience in renovating and selling property?

Does your child want to go to Uni? That's if they are the age to think about these type of things!

angela24_2

Well Annie i still have a large chunk left on my mortgage.
Yes i have renovated before. Did this on my last property before selling it.
Finally my child does want to go to Uni but does have another 3 years to go so anything could happen in that time. You know what kids are like!

elantan

if it was me i would put the money towards my mortgage ..but that's casue i don't have the know how to do the second and as for the third my son plans on going to uni also but that will be his choice and he will need to learn at some stage in his life to take responsibility ...good luck what ever you do decide to do

moozie_2

I think this is such a personal decision. Everyone on here can only give a very subjective answer based on their experiences

I have never renovated a property - nor would I want to. I don't have children - nor do I intend on having any. Therefore, I would pay it off the mortgage and save me some money in the long run.

Best of luck with your choice

Annie_Fanny

How did you gain the £20k? From renovating last property? Saving like a beast!? Or other? How likely are you to acquire another £20k? What type of personality are you, i.e. risk taker?

Sorry for all the questions!

whatatwit

At the moment, I would stick it into Premium Bonds, the Christmas draw will be 5 x £1 million.
Then once I had decided, withdraw money & use as wanted.

How much will you be better off by each month if you reduce your mortgage?
Maybe you could invest that amount into a high interest saver account ready for uni fees.