What to do with my inheritance

CmBRam

Hello!
I'm hoping someone here will be able to give me some advice. I'm due to get around £80000 in inheritance soon and as I've never had a sum of money like this before, I'd like some advice on what to do with it.
Here are my current thoughts:
Pay off a loan used to buy a car (£8000) as I think that paying the interest here will cost more than I'd earn on savings.
Keep £10000 for my son (not sure what option is best here).
The rest will probably be used to go towards moving house - so is it best to pay down my current mortgage to have more equity when I come to move or have more liquid cash to put down on the new mortgage?

Cheers in advance!

[Deleted User]

Whether it's best to pay down the mortgage friends on the rare you're paying compared to you savings and and overpayment limit. 

Equity v cash makes no difference.

The money for your son depends on when you want him to have it.

Albermarle

How about investing some for the long term /retirement?
Doing this via a pension is usually the best route.

jimjames

Deleted_User said:

Equity v cash makes no difference.

I'm not sure that's actually correct. If you overpay your mortgage fully and use all your savings then you may have a problem when you come to move and need money for the deposit or other fees. I'd suggest it's worth keeping at least a chunk of it as cash so you're able to do the deposit at the point of exchange.

In terms of the car loan it's highly unlikely that the interest rate you're paying for the loan is less than the rate you'd get on savings so paying that off is a good idea as long as there aren't any excessive early payment fees. The same applies to the mortgage, check there aren't any early repayment fees before paying amounts off - depending on the deal you;re on it may be 10% per year you can clear without penalty or it might be unlimited.

csgohan4

Start with have a large enough emergency fund first and then the rest is personal preference and your own circumstances. Investing would be for a 5-10 year period minimum so it may not be suitable

Thrugelmir

Certainly clear the personal loan. 
There may well be a restriction on the amount that you can overpay the mortgage by. So check first.  What interest rate are you paying on the mortgage?