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 !

Put some into a pension and you will get 25% added to it! Or more if you are a top rate tax payer.

We have another pot of savings for relocation costs and living costs when we move back here before we get jobs sell the house etc

With no savings, the first thing I'd do is put 6 months total spending in a savings account.

I’d be boring and put some towards my pension then buy another property and rent it out

Lump sum on the mortgage and increase pension savings (either AVCs or S&S ISA).

We’ve just inherited a similar amount. We paid off mortgage and debts (8k), spent £27k on new bathrooms, double glazing and kitchen. Have given kids £5k each for saving and we’ll keep the rest as a cushion.

@fitzbilly

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!!!

This is amazing! I would love to have the guts to do this! My kids a bit older though so probably wouldn't work. But if I was child free I'd do this in a heartbeat. Life is for living!

If this is a pure financial decision, I wouldn't pay off your mortgage and would invest it elsewhere. By paying off your mortgage you are essentially 'investing' at your mortgage rate (gotta be

We are not in the UK so actually have a very good mortgage rate of 0.80%. So our mortgage is quite affordable.

I would put in isa til need anything or cover 5 years private school and send child to private and get a better start in life

Don't buy a property to rent out. It's not as easy as people make out and tax changes means not as profitable. Use it towards your mortgage and save tons of interest.

That would nearly pay off our £80k-left-of-mortgage so the sensible thing would be that.
However, I'd like to have lots of wildly expensive holidays.

I'm guessing sensible DH would win but maybe one expensive holiday could be squeezed in

no other savings? Have a look at just how screwed you would be with job loss/death/disability.

get the mortgage down but have some accessible savings. Think about pensions too.

yes, boring I know but a lot less boring than a poverty-stricken later life.

Clear both of our student loans (30k)
Get mortgage up to 40% equity so we can refi, qualify for a lower APR + cut our monthly repayment (40k)

In total, that would decrease our monthly debt repayments by about 700. As a result, we'd be able to save more per month and afford better holidays/quality of life stuff over a longer period of time than if we used the 70k up front for a big holiday or something. Boring, but great in the long run!

Although you say you'd cleared debt other than mortgage already. In that case, it'd all go on the mortgage and I'd refi to a 15 year (on a 30 year right now).

That would make a bit change in your mortgage payments, I'd pay it off that and reduce both the interest you pay overall. I'd keep current payments though and pay off early.

Deposit for a 4 bedroom house so I can give up sw and foster full time. No question about it.

Sell my house and use it as a deposit to buy a bigger one with a garden and fit for two/three kids.

Campervan!

Mortgage rates are so low not sure paying off the mortgage is the most financially sensible option. I’d keep some as savings and look for other options like shares isa / pension. You might find you make a better return that way

I'd put it into stocks and shares and, with a decent return, have quarter of a million quid in 18 years ( when I hit 60).

@fitzbilly Your trip sounds amazing!

We're about to get a similar amount. We've already paid off the mortgage and bought a new car last year. So we plan to put most of it into our pensions. Instant 20% growth thanks to Govt. and it means we can retire more comfortably at 60 (three years away).

We are planning to get the front garden done, as well as a new fence (dull) and possibly a new shed-cum-summerhouse.

Brand new VW camper van.

Major house overhaul and a loft conversion. Anything left would be earmarked for a nice holiday when CV19 abates and perhaps top up savings.

"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."

Indeed it will. I'm about to put a house up for sale, hoping to get around 60k for it. It has 3 rooms that are constantly rented out as demand is high due to a huge local employer

Sorry for your loss.

Given that your mortgage rate is low, at 0.8%, I wouldn't necessarily prioritise paying off the mortgage.

I would look at whether there is anything that would significantly enhance your life eg improving your house/garden, going on a dream holiday, etc. But I wouldn't spend a lot of money for the sake of it, so if there's nothing big you want to do with it, I would maybe kept £7k as a holiday fund and then use the rest to pay off the mortgage.

If your repayments are already low then you could consider overpaying your mortgage anyway (provided it's still affordable) regardless of what you do with the inheritance.