How best to use my £273,500 inheritance?

Stubod

..I would certainly pay off the outstanding mortgage asap??

surreysaver

Stubod said:

..I would certainly pay off the outstanding mortgage asap??

Depends what interest rate the mortgage is, surely?

IanManc

Direct_talker said:

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I’ve also thought about buying a property for my daughter to rent from us (using her Local Housing Allowance via Universal Credit), but I’m aware there are a lot of potential pitfalls with buy-to-let.

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Any advice, ideas, or personal experiences would be much appreciated.

As well as the usual caveats with buy-to-let, buying a property for a family member to live in with rent being paid by benefits may well be seen as a contrived tenancy, i.e. a fraud.

xylophone

What interest rate are you paying on the mortgage? Had you considered paying off the mortgage?


https://moneyfactscompare.co.uk/savings-accounts/

Are you and spouse using full ISA allowance for the current year?

Bostonerimus1

surreysaver said:

Stubod said:

..I would certainly pay off the outstanding mortgage asap??

Depends what interest rate the mortgage is, surely?

While current interest rate is a consideration there are many who feel that any debt is a financial hinderance limiting what you can do with your money. When you have paid off the mortgage you might feel able to take a bit more risk with your money etc. There is also the psychological benefit that many people experience; removing mortgage payments from your budget can be a big relief.

Bostonerimus1

Pay off all high interest debt, that might include a mortgage depending on its interest rate.

Put 6 months spending in the bank for emergencies, more if you have near term firm plans for the money. Use current and saving accounts appropriately.

Put money into your workplace pension in low cost multi-asset or index tracker funds. This is the best way to provide income for your retirement

Put money into an S&S ISA in low cost multi-asset or index tracker funds from companies like Vanguard, Fidelity, L&G etc. 

Put money into a general investment account in low cost multi-asset or index tracker funds from companies like Vanguard, Fidelity, L&G etc.

I would not buy and real estate beyond your own home without fully understanding that costs, potential pitfalls and responsibilities of being a landlord. I would not take on extra debt with the housing market where it is right now. Leave that risk to others.

leonard_455

I’d probably clear the mortgage first – it’s a guaranteed “return” and gives peace of mind. Then maybe split the rest so some’s in a safe easy-access savings account (even if the rate isn’t huge, it’s better than 0%), and some in a fixed-term or notice account for a bit more interest.