Savings advice for £20k

smiler247

Hello there,

I have received an inheritance of £20k and would like some advice on what best to do with it.

I currently have a property worth £160k with an £86k mortgage remaining. I am also in the process of looking for a new property with my fianc! - my new job starts in September and so our plan at present is to hopefully buy a house by then and then sell my other property once I’ve moved out. I am aware of the stamp duty for a second property and have the funds to cover that.

Should I put the 20k into a savings account or use it to pay off my current mortgage?

Thank you.

klew356

FOLLOWING :money::money::money::money:

El_Torro

Do you have an emergency fund? i.e. at least 3 months worth of expenses in instant access savings? If not then you should sort this out first, using one of these accounts: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/


If you already have adequate savings then you could overpay your mortgage, though I don't think that's high priority as you already have a lot of equity in your property.


The other option is to invest, either in a S&S ISA or by paying more into your pension. This will give you the best long term returns, though your money isn't instantly accessible. Even in an ISA you need to be careful not to withdraw money when the stock markets fall.

xylophone

It might be sensible to hold in cash until after you have moved into your new property, sold the old and settled into your new job.

Six months in Premium Bonds? It might be you!:)

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html