Come into some money, but dont know what to do with it........

andy_d12003

Hi all,
I have recently inherited some money following my mum passing away last year, and now I am not sure what to do with it. I have a number of options to consider.

I have a mortgage of roughly £235,000 which still has 34 years to run, so I am thinking of paying some of this off. With my current mortgage deal I can only pay off 10% a year, so this would be £23,500 of this.

I have been pretty good financially in other matters, so my only other debt is a loan for around £3,000 for some furniture, this has around 3 years left to run, and is an interest free loan, so apart from not having to pay bills every month, there is no benefit to paying this off.

I have a car which is 2 years old and I own outright, is it worth considering updating this as well before the car loses even more value, or am I better just running it until it dies?

I really have no idea what the best thing is to do?

chesky

Sorry for your loss. Just to give us an idea of what you could do, can you say how much have you inherited?

enjoyyourshoes

Interest bearing current accounts:-

TSB £2 K (4%) sole and joint plus Reg saver at 5%
Lloyds £5K 4% plus reg saver at 4%
Sanatander £20K at 3% plus reg saver

Reg savers
HSBC 6%
First Direct 6%

Kids Halifax 6%

Maximise pension (tax rebate at 20%) or start SIPP

Look at investing with s&S isa

Look at reportage and do like for like comparison of savings Vs costs (ERC + additional charges for new mortgage)

andy_d12003

chesky wrote: »

Sorry for your loss. Just to give us an idea of what you could do, can you say how much have you inherited?

Hi, I have got roughly £80k, I want to make sure I use it wisely (like my mum would want me to!) Rather than spending it on things I don't need.

I want to try and make at least some of it make some money for me.

anna_1977

my only comment would be regarding the car...if you're is only 2 years old there is absolutely no need to be changing it now. It should be years before it starts costing you anything.
If it were me, i think I'd be tempted to pay off the £3k (just ot get rid of it regardless of the 0%) and maybe make 1 overpayment of £23,500 on the mortgage and look at putting the rest in high interest accounts (not that they really exist). If you're worried about spending it rubbish then put in an account that you don't have instant access to

27col

As far as I'm concerned the sheer joy at being mortgage free would exceed any other consideration. The more you pay off now the quicker you will be free of it.
We only ever had a small mortgage but even so, it was a great day when we finally became free from it.
I certainly wouldn't waste it buying a depreciating asset such as a car. Even if you got a new car it woild lose you as much money as your existing one does. Probably more because the new car would be more expensive than the old one.

Fosterdog

I would also clear the £3000 and either pay the rest (except maybe £5000 as a buffer fund) off the mortgage, either all now if fees are lower than interest would be by keeping it going longer or if fees are higher than interest pay the max you can now and the rest as a lump sum when your current deal ends. It will bring your overall interest down by quite a lot and will dramatically reduce what you are paying overall.