What would you do with 70k?

[Marianneconnell]

Very unexpectedly we have come into an inheritance. After we have cleared our debts ( apart from mortgage) we are left with 70k. What would you do with this amount? All we can really think of is home improvements and maybe a new car. Usually a holiday would be top of the list but given the current circumstances that's out. I'm looking for inspiration !

Keep a wodge for a nice holiday. Keep £20k cash/shares investments for rainy day fund and put the rest into the mortgage. It will make a difference.

I'd either-
Put a bit away (up to 10k) for some indulgent things, like a nice holiday or some treats then pay the rest off the mortgage.

Or buy a cheap fixer upper, do it up and sell on at a profit, repeat (maybe not the right climate for that at the moment?)

Pay off the mortgage.

Predictable I guess, but a big decent holiday, car, then pay the mortgage off with the rest.

Pay £60000 off the mortgage. Go on a really great holiday with £5k and put the rest into Ernie bonds.

You are getting virtually nothing for savings and you might win the odd £25 or if you are really really lucky a bit more

I'd invest it in property given your mortgage sounds manageable.

@fitzbilly - I really love the idea you have. Can you tell us more?!

If you need a car I wouldn’t buy a new one. Cars are a depreciating asset

I would invest the money into a btl and use the proceeds to lease a car.

At the end of the lease at least you still have an income and an appreciating asset

absolutely the mortgage, that road leads to freedom

I'd probably buy a small property to rent out. Then use a percentage of the monthly rent income to enjoy life / save for something nice.

Then sell the rental once my DCs are of an age when they're looking to buy and need a little help with deposit.

70K definitely would make a big difference in paying off your mortgage! As PP have said, it could mean the difference between retiring years earlier!

Use a calculator to see the benefit; and don’t forget to take into account if your mortgage has any overpayment caps or fees - it will still probably be worth it overall even with the fees (saving more on interest overall).

Either that, or as PP have suggested could you do an extension or loft conversion? Adding an extra bedroom would increase the value of your property giving you more flexibility and more favourable mortgage rates when remortgaging in the future.

I'd put all of it on mortgage... Anyone else I'd recommend to put most of it on it with a little rainy day and treat fund...
It'll save you thousands in the long run

Keep three months income as a cushion against things and then invest the rest in paying of your mortgage. Check early repayment conditions and do not let them adjust your monthly payment, you want to reduce the time til your mortgage is paid off

Work out how much it will save you in interest. Very motivational.

180k left to pay so it wouldn't make a huge difference.

If you work out how much interest it will save you, you might well be surprised.

@pinkcarpet

www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ gives you all the options to overpay either monthly or in a lump sum

That's brilliant thanks!

I’d put it all into the mortgage.

Looks like mortgage might be a good option after all!

I'd do a trip to somewhere wonderful - for me it would be Galapagos or Churchill in Canada for the polar bears. Antarctica is also an option (I've been). Or a trip deep into the Brazilian Pantanal to see jaguar. Ooh or a Botswana and Namibian safari. A nice trip to any of these places could easily swipe £20k.

I'd then pay a lump off the mortgage, put some in the kids savings accounts and my pension and keep some for house renovations.

If you don't have other savings definitely keep at least £10k as an emergency fund.

I'd put 50-60k into mortgage and keep the rest for hlme improvements and holiday when possible.

£45k on mortgage
£20k long term savings
£5k splurge on one family holiday/treats-not a great deal but I would prefer having more security.

Will that amount buy a house to rent out?
Relatives did so in another city known for cheap housing, as where they live is much more expensive.

25k on garden landscaping.

15k on a new car.
Then lots of holidays.

(I have no mortgage and am retired)

How lovely!
I'd finish my home decorating and new driveway
Put money in kids savings
Buy a campervan!

I would pay off £50k of mortgage as it would make monthly payments cheaper, save £10k in premium bonds & use rest for some adventure like Interrailing.

Option 1: buy a small holiday home (assuming you can afford a small second mortgage). Lots of places available in Spain or France for low £100ks.

Option 2: Home improvement to your dream home

Option 3: Move house if your current home isn’t your forever home (again, may have to take on small mortgage)

Option 4: Buy somewhere in the north to rent out - my MIL bought a small 2 bed in derbyshire for £100k a couple of years ago and makes £500-600 a month

Option 5: pay off mortgage, this is the financially sensible option probably...

We've been saving and planning for about five years!

We're going to travel around Europe and the UK in a caravan for the warmer months, then head of to chase the sun through India, Sri Lanka, Indonesia, v the Philippines, Japan and Hawaii between October and march, then back to Europe until July when we'll come home, relocate, find jobs etc!

This is really important to us so we've prioritised working and saving for the last five years (I only took two weeks maternity with my youngest to help!)

We are going to focus the year away on our favourite sports and getting really fit and good at those sports, while also introducing our DC to them.

The kids will be 2 & 4 when we start. We will home school the older one through reception, he will go into year 1 when we get back.

It's really exciting!!!