Money into my mortgage or saved?

scotgirl

I hope this is posted in the correct place.

I am to receive a gift of £10,000 from a Grandparent and I need some advice on what to do with it.

I am due to move into my new house in May and am unsure if I should use the money to reduce the mortgage or save it? The current mortgage would be 70% LTV before putting in the money I am to receive.

Or should I invest the money?

Thanks for any help. :money:

Crabman

Hi scotgirl - I'll move this to the Mortgages Board for a better response

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Conrad

Compare the returns to the mortgage interest.

Lets say the mortgage interest is 5.5%, thats the NET after Tax return you'll need to achieve on an investment. ISAs have alimit of £7500? (IFA to verify this figure please) and you might find one with that sort of return.

If it were me I'd buy a property in Egypt, Morocco or Germany - but thats me, I'm a bit wild at times! Id use £10000 as deposit and the balance on mortgage giving a total price of say £30000. Beware - getting mortgages abroad is difficult, do not believe anyone who tells you otherwise.