How to make the best use of an inheritance?

keefb

Hello,
I'm sadly soon to inherit around £100K+. IHT has been paid and accepted by HMRC and probate has been applied for.
I am 10 years away from retirement and am not a homeowner. I have a S&S ISA, a private pension and no debt.
Any advice on how to best use this would be most welcome.

Thankyou

xylophone

am not a homeowner.

You do not want to buy a home?

keefb

Victim of the rental trap. Doubt I could get a mortgage at 55 years of age.

keefb

No kids either.

Alexland

keefb said:

Victim of the rental trap. Doubt I could get a mortgage at 55 years of age.

My mortgage provider was willing to lend on the possibility I might keep working until age 80. So for you that could be a 25 year mortgage.

Once you have it you can perhaps reduce the term via overpayment, pension lump sum, etc if that makes sense at the time.

So rather than making assumptions it's worth spending a few days researching and hitting the phones to understand the mortgage market for your circumstances.

If you find the required lending is not easily available I found talking to small regional building societies was more useful than the big names and brokers.

How did you you plan to retire in 10 years if you are in the rental trap? Will your pension(s) be substantial enough to cover rent? If so they will probably be enough to cover mortgage payments.

Alexland

JamesRobinson48 said:

A 35 year mortgage commencing at age 55 would go out to age 90, not 80. Was that what your post intended? 

Mental maths while preparing to go to work! Updated to 25 years but thats still plenty of time unless the amount borrowed would be pushing the limits of affordability.

Angelica123

What is your current wage? How much is in your pension? How much would you need per annum in retirement?

How much are houses/flats in your area? 

xylophone

£100,000 is a reasonable deposit.......

https://www.comparethemarket.com/mortgages/over-50s/

nottsphil

keefb said:

Victim of the rental trap. Doubt I could get a mortgage at 55 years of age.

You could get a 10 year mortgage - maybe longer if the deposit covers most of the purchase price. There are lots of areas near the northern Notts/Derbys border where you wouldn't need a mortgage at all - terraced house with garden, not on a council estate. Where do you live and are you prepared to move?