We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Inheritence - what to do with it
junebug87
Posts: 54 Forumite
My husband and I are about to receive a decent amount of inheritence and are wondering how best to use it.
We know we want to move house but are aware mortgage rates are not the best these days and are not sure if we'll realistically be able to move for another year or so.
We have a house at the moment with £150k left on the mortgage. Our only other debt is a car loan of about £12k.
Whats the most sensible thing to do in this situation? Neither of us have had this amount of money before but want to make sure we're being sensible with how we do things.
Are we better off paying off our mortgage and loan, and saving the remaining inheritence to put towards a house when mortgage rates settle down? Or should we save all of the inheritence money until we find a property to move to and just leave our existing debts alone?
I feel like I'm leaning towards the first option but it makes me nervous! And with our current mortgage rate being a good one (less than 3%) are we better off porting that one (assuming no fees) rather than paying it off and getting a full new mortgage at a higher rate? Or does it not matter??
We know we want to move house but are aware mortgage rates are not the best these days and are not sure if we'll realistically be able to move for another year or so.
We have a house at the moment with £150k left on the mortgage. Our only other debt is a car loan of about £12k.
Whats the most sensible thing to do in this situation? Neither of us have had this amount of money before but want to make sure we're being sensible with how we do things.
Are we better off paying off our mortgage and loan, and saving the remaining inheritence to put towards a house when mortgage rates settle down? Or should we save all of the inheritence money until we find a property to move to and just leave our existing debts alone?
I feel like I'm leaning towards the first option but it makes me nervous! And with our current mortgage rate being a good one (less than 3%) are we better off porting that one (assuming no fees) rather than paying it off and getting a full new mortgage at a higher rate? Or does it not matter??
0
Comments
-
Check with your mortgage provider about porting that mortgage - 3% is good, and likely to remain so, so it's worth hanging on to. Certainly for the next year you'd be able to able to beat it with cash ISAs (use both your allowances) and probably normal accounts even if you pay basic rate tax on them (you can now, anyway).
For the car loan, I'd guess its interest rate is above what you could get for savings, so if there's no penalty for early repayment, that might be worth repaying.0 -
Is it enough to buy the new home outright? - if so would be tempted to do that and then sell the old one0
-
How much is the inheritance?
Do you have adequate savings for emergencies and pensions for retirement?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards