Mortgage and Money

Springlamb

Hi Guys,
I need advice. I have recently had a claim pay out to the value of 100k,
I owe 153K on my mortgage which runs for another 21 years, fixed at 2.99% until 2022 with Virgin Money. Part of the 153k is a loan of 26k on a rate of 5.99% for 10 years. I have been advised to pay the loan off in total, which I will do. I can only pay 10% per year of the main mortgage which i will do, this will leave me with 60k. What do I do with the rest of it? Do I pay it into my pension? I already pay £600 per month, I have 2 children aged 10 and 7, do I put some of it into a ISA for them? Do i put it into 'Buy to Let' properties? Do I invest it and if so where?

Thanks in advance.

AlanP_2

What do you want to achieve with the money?

Build pots for the kids?
Retire in xx years?
Buy a new yacht?
Start your own business?


Once you are clear on where you are going you can work out how to get there a lot easier and suggestions and views can be focused on your circumstances.

Consider the whole family situation if relevant.

Springlamb

I have my own business, I want the money to work for me, yes retire early and build pots for the kids. Do I invest it in property or lock it away in a pension...

xylophone

The older child has a CTF? This can be transferred to JISA.

Does the younger child have a JISA?

https://www.gov.uk/junior-individual-savings-accounts


Coventry BS is currently offering the best cash JISA rate.

Or you might consider stocks and shares - example

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/

atush

Isas for you and the OH, Jisas for the kids, rest into pension

Elika0215

If your 10% mortgage payment is due to being locked in at 2.99%, when can you next overpay?

If you're looking to save for your kids futures start with a junior savings account and then you may want to put another 10% aside for the next mortgage due date. Unless you want to take a risk, you're unlikely to find a savings account (even locked) paying more than 2.99%.