Received inheritance not sure what to do with it

Mojisola

Hades2k4 wrote: »

With regards to wasting £700 a month, we saved for our deposit which took a long time and resulted in moving back with mum and dad which was difficult. We said to ourselves that any excess cash we have left when we move into our place we were going to enjoy. This is what we have done for the past year and we have had a great time with no regrets.

If one of my kids owed me £400 and happily spent over £8000 enjoying himself during a year without any regrets or thoughts of repaying me, the door of the bank of Mum and Dad would be permanently closed in the future.

getmore4less

Stick the money on the mortgage now upto ERC limit unless you can get net 4.49% from somewhere.

Hades2k4

The loan was more than 400 quid and most of it has been paid off.

gallygirl

You need to decide how much emergency savings you need - then drip feed that into a FD regular saver at 6% (2 x £300 a month). The rest of your emergency fund is as well off in a 123 account as any other.

If you can pay some off your mortgage now with no penalties then you could do that after clearing all your loans and setting aside your emergency fund. When are you planning on Florida as that will cost a fortune and I don't think you can do it all on 30k. Do you want to jeopardise a better LTV for the sake of having a holiday a few months earlier? For what it's worth, if you want to do the theme parks then December is a great time of year as not too hot.

Marktheshark

If you work for the council I would suggest you pay off the loans and then put it away for the possibility of redundancy, they have not even started the local government job cuts yet.
If you have 20k banked that buys time if the SHTF.

Nebulous2

I'd pay off all the loans, put £15k to the mortgage and keep £10k in savings for emergencies.

Take your holiday in America - but save for it from the money you are saving in loan repayments and from your £700 spare a month. That will help you get used to budgeting for additional expenditure.

Your future plans are your own business, but if children feature in there somewhere then learning to live on a budget will be essential.

Don't beat yourself up about the debt and previous expenditure. Iy has gone and you can do nothing about it. This £30k is a huge oportunity to break the cycle and start again though.

dimbo61

If you now have the money in the bank then call your lender in the morning and check if you are allowed to overpay and by how much ?
If its 10% then pay that off the mortgage before the 31-12-2014.
You may be allowed to pay off another 10% next year.
Clear the debts and have a CHEAP holiday in the USA.
Just book the flights first and then sort out travel insurance.
If going to Florida you can get cheap hotels/apartments near Disney.
You will never get 4.49% from savings to reduce your mortgage debt after paying off the loans.
The mortgage payment will also go down so WIN WIN

justme111

So debts £10000.
For many lenders cut off point is 75%ltv. So for 80% ltv you would need roughly £10000. You almost certainly would get better deal on 75% and you would need about £ 17 000 to get to that. Which leaves you with enough either for xash emergency or holiday. Of course a no brainer would be to save those £ 700 and have holidays with them once saved. You dont want to do it - fair enough.Only you can tell what your priorities are , in money terms you would be better off getting ltv to 75%.
One makes one's choices , one takes responsibility.
Good luck again

theoretica

Your plan looks fair to me, with a few comments:

Hades2k4 wrote: »

Pay off the loans straight away definitely
Pay an amount towards the mortgage nearer October 2015 can you get 4.49% on savings? If not make the payment to your mortgage as soon as you can, no point paying to borrow money on your mortgage and have it sit in savings.
Hold back a minimum of £5,000 for an emergency fund discuss before hand what is an 'emergency' - I suggest this should be for life changing events of the redundancy/major illness level (hopefuly not needed until retirement) and not things which shouldn't be emergencies as you know they will come up eventually, like new cars or home repairs.
Reduce the monthly excess cash we have and put into savings. (for home repairs and next years' holidays etc) Is this best going to an Isa or our 123 account? Or a first direct regular saver?
Enjoy sum of the money and go America.
Any money left over either goes into the mortgage or savings.

Serendipitious

Mojisola wrote: »

If one of my kids owed me £400 and happily spent over £8000 enjoying himself during a year without any regrets or thoughts of repaying me, the door of the bank of Mum and Dad would be permanently closed in the future.

First priority within twentyfour hours of the funds being cleared and available should be to pay off Mum and Dad and also to arrange a thoughtful and fairly expensive treat for them by way of a thankyou for all they have done.

But I admit I am biased. I speak as the Bank of Mum who is always bottom of the list when it comes to gifts from allegedly desperate borrowers and this Christmas is still fresh in my memory.