Armed forces redundancy pay off unsure what to do with the money?!

Pumpkinx

Hi, just looking for some advice, we have armed forces redundancy and will be off in June 2013 the amount is £40,000.

We have debts for £13,000 all in all excluding the mortgage. That's left us with £27.000. Soon as the debts are cleared all the bills and mortgage can go on my wage and I will have enough over not to skins myself. He is pretty much guaranteed a job after he leaves as a friend is the MD going security for good money well anyway, what to do with the £27,000? Stick it in a high interest saving account and leave it? Or is £27k is to low to gain interest that sticks out? Thank you

marlot

Look on the savings boards for ideas.

Perhaps the virgin account. Perhaps put it into premium bonds (if you fancy taking a chance).

getmore4less

What rate is the mortgage?

Pumpkinx

6.99% currently on tracker and last month paid £498. We have put it on the market and has a lot of interest. Downside is, it's an apartment where it's expensive just because it's in the middle of town center so hopefully we will rent until we get on our feet if we sell.

Pumpkinx

6.9% **** not 6.99% lol sorry half asleep :-(

getmore4less

OK once income is sorted I would keep a bit back(eg deposit on a rental) and then put most of it on the mortgage(asume no penalties) you will struggle to get 6.9% anywhere else

You get it back when sold and have time to thinkabout where you put your equity.

just be carefull not to get into debt again.

think about renting somewhere cheap and close to work to reduce costs.

(based on limited info so there may be other factors that say keep more in cash.)