What to do with a lump sum of money, need advice?????

usermay2011

I have no idea what exactly to do with this amount of money can you guys and girls please provide advice for a girl who's about to receive some money. Buy a house or invest????

It would be about £20,000
Thanks
Jen :j

Zekko

Until you decide what you want to do with the money, put £5640 of it into an ISA (if you haven't already paid into an ISA this tax year), with the rest in the best paying instant access savings account.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Totton

Hi,
Standard stuff would be to pay off debt and put into a savings account at least 6 months salary as a rainy day fund. Next put the max into a Cash ISA but look around for the best interest rate as they change almost daily. If you have any left then you could think about a general fund such as Murray International Investment Trust but you may prefer to make sure that savings maximised for that all important start on the mortgage ladder.

Best Wishes,
Mickey

HappyMJ

usermay2011 wrote: »

I have no idea what exactly to do with this amount of money can you guys and girls please provide advice for a girl who's about to receive some money. Buy a house or invest????

It would be about £20,000
Thanks
Jen :j

Depends on how much you earn? What rent you currently pay and what sort of property you are looking to buy also considering you really should live in it for the next 7 years to at least break even on a rent/buy calculation. £15,000 could be used as a 10% deposit to borrow a further £135,000 on a property valued at £150,000 but the interest rate won't be very competitive. The higher your percentage in equity the lower the interest rate that you will be able to borrow at. If you used the full £20,000 as a 25% deposit to borrow £60,000 could you find a decent property at £80,000? It's quite unlikely. You could go half way and use £17,250 as a 15% deposit borrowing the remainder on a property worth £115,000.