What to do with £150k

SarahJK

I'm about to come into some money - about 150k.
I have a 350k mortgage currently fixed until April 2025. 
I'd like to do a bit of work on my house (no more than 40k I hope).

With the remaining money I'm considering my options,
do I save what will be 10% overpayment for the next 3 years of my mortgage (using up all of the money)? 

Do I invest it (but in what, I'm not at all clued up)? 

Do I buy a buy to let?

What would you do? Thank you. 

Stubod

..I would pay off the mortgage...but that's just me.

If you don't understand investments, don't invest.

Deffinately don't get a BTL !!!

Possibly stick some money into your/spouse pension??...depending how you are fixed pension wise?

Maybe stick some in an "easy access" emergency fund??, (eg 6 months worth of your normal expenses).

......you don't really give enough info regarding your current pension / savings / earnings / debts / age / long term objectives to comment further??

jimjames

Pension? ISAs? Emergency fund?

M4rtyman

Use between £40- £60k and play the savings game. With current interest rates you can earn enough to cover your holidays each year.

Normally I would suggest just lumping £60k (or more) into a 4% 1yr account, but with rates on the rise, might just be worth sticking £20k in a 1yr account just now, and storing the rest in an easy access account. Then in a month or two, transfer £20k from the easy access into another 1yr account with hopefully a higher rate. And then in the New Year/Spring, do the same again.

Then when each account matures, stick the interest into a holiday fund (or whatever), then just shop around for a new account with a similar or better rate, and do it all again

AAZ

SarahJK said:

I'm about to come into some money - about 150k.
I have a 350k mortgage currently fixed until April 2025. 
I'd like to do a bit of work on my house (no more than 40k I hope).

With the remaining money I'm considering my options,
do I save what will be 10% overpayment for the next 3 years of my mortgage (using up all of the money)? 

Do I invest it (but in what, I'm not at all clued up)? 

Do I buy a buy to let?

What would you do? Thank you. 

Advice from a Novice so take it with a pinch of salt
I had some 80 K recently 
Invested in tracker fund (world/america) and small amount in UK tracker.
I have also interest in Buy to let but I only want to buy if I can afford monthly morgage payment without relying on rent ( which I currently can't ) and given how interest rate are going up I dare to say it will be a foolish decision currently.
If supposedly great house price crash does happen in 2 years as being predicted and houses are sufficiently cheap then I may dip into buy to let .

Exodi

What is your mortgage interest rate as that will dictate whether you should overpay your mortgage?

If it is very low (<2%), then it probably makes more sense depositing the money elsewhere where it can earn greater interest, then potentially dropping it all into the mortgage when your fixed term expires (if it looks like your new rate will be much higher).

While this probably makes the most financial sense, it does depend on your financial discipline. If you see yourself likely to nibble away at it if it was to sit in a savings account, then perhaps go with your original plan of dropping £35k in per year to at least guarantee you have something to show at the end of it - two of my relatives (my mother and my aunt) lost control and both burned through their inheritances in a few short years with fancy holidays and never-ending 'treats'.

I would do a lot of research before you consider investments or BTL - these are not things you just casually dip into, and as investment advice is regulated, no-one here can tell you what you should invest in. You have the potential to lose a lot of money with investments or BTL if you go into it without having done your research.

penners324

Put a big chunk (upto your annual salary at a max of £40k a year is allowed) into your pension 

Albermarle

Do I invest it (but in what, I'm not at all clued up)? 

If you are interested in maybe early retirement, or a saving for a decent retirement, then investing via a pension is usually the best way. So you could consider adding more to yours or your partners pension. However it depends who is employed/how much they earn as there are rules about how much you can add to a pension each tax year. Also depends on what sort of pension you have now, if any.

Do I buy a buy to let?

It is more difficult to make money from buy to let since various tax changes came into place.
Also it is better if you have DIY or building skills, so you do not have to always have to pay someone else.
Plus you might end up with tenants like these.
My5 - Nightmare Tenants, Slum Landlords - Season 1 - Episode 2 / Episode 2 (channel5.com)