100k inheritance

crazyhugh

Hi,

I am shortly due to inherit 100k and I would like some help with what to do with it.I am currently mortgaged at 115k at a fix of 3.99.There are several parts to my mortgage and I could pay off 40k next Feb and 26k next July without penalty.I currently have savings of 42k but run with an overdraft and some credit card debt (about 15k) but this is at 0% or low rates at present.

calypso_rhapsody

It all depends and to get any sensible advice you need to give us more as your current position and future plans will dictate what is right for you. £100k is the sort of sum that might justify a trip to an IFA ...

Some thoughts:

Do you have a pension? A company one with employer matching contributions? Can be a good idea as you get tax relief on contributions but it does tie your money up until you're 55 or more

Are the repayments on the mortgage manageable? At present you will be hard pushed to find a savings account that will generate 3.99% after tax (5% gross if you are a 20% tax payer) so paying some off may make sense. But you might get a better return in other investments or in a pension.

Are you risk averse? would investing some in stocks and shares (maybe within an ISA) be of interest - need to be willng to take a long term view ....

Assume that since you have £42k in savings you are maxed out on ISAs ... why do you have an overdraft?? credit cards should be repaid as soon as 0% period is over.

Oh i could go on but without knowing a bit more about your situation and plans/ambitions it's not easy!

crazyhugh

Thanks.I already have a pension arrangement.I suppose I would like to be mortgage free however the payments are quite manageable at the moment.I am risk averse although I do have 10,680 in a jupiter stocks and shares ISA and I would not really chance any more money there as it has already lost me about £1000 at the last check.I am maxed out on ISAs so far.My overdraft is a habit related to my spending habits - I always seem to get one no matter if I pay it off - the same applies to my credit cards, as soon as I pay them off I aquire more!

calypso_rhapsody

Sounds as if you've answered you're own question then ... you'd like to be mortgage free ... so then the question is when/how to achieve that ... given that you can't save in anything that will generate 5% gross paying down the mortgage when you can seems the answer. In the meantime, put it in a good instant access account (the Coventry's Poppy account maybe).

Maybe buy a book about taking control of your money to help you address your tendancy to spend? See this thread for a suggestion from ermine https://forums.moneysavingexpert.com/discussion/3623583

crazyhugh

Thankyou - the suggested book looks a good read.The coventry account did cross my mind and I can draw down from this to repay the mortgage.