Never had this amount if money!

[Beansandcheesearegood]

Dh unexpectedly due to inherit £40,000 never had that much money and no clue what to do with it!
Holiday? Invest or save? Extend house?

£5k holiday and fun
£10k savings/premium bonds
£25k pay off some of mortgage

Invest it , £20k in this years ISA and £20k in next years

£5k on a treat holiday
£35k into savings and don't touch it again

Do you need to extend the house? I always think it's better to get a bigger house that's designed that way than have building work <shudder>

Depending on the extension you're planning, 40k won't go very far!

Just spend some and invest some!

Maybe give him a chance to come to terms with his bereavement and surprise of inheritance before you've spent it in your head?

Depends on what your situation is at the moment (debts, mortgage, savings, work, pensions, managing day to day etc).

We inherited a similar amount several years ago and it was perfectly timed to help with a house move.
More recently we inherited a larger amount but have no immediate need for the money so it was put into various savings/investments (already early retired so no need to boost pensions).

Extension will cost more than that.

Invest it and make money from your money I til you know what you want. Don't just spend it on a whim.

Check to see how much mortgage you can pay off without incurring a charge!

I would keep £10k in an easy access savings account (some are still offering close to 5%) and lock £30k away in a 2 or 5 year fixed rate account, which should still be paying interest at about 5%.

I’d allow my partner to decide this for himself and give support and advice if he asked for it. If we had kids I’d expect a tiny sum put away to build on until they were 18.. and that’s all I would expect. Yes I’d hope he’s want nice holiday and to do something to better our life but really it’s not my money or decision to make

With respect, it entirely depends on your individual situation. No- one can advise you without more information.

What would your DH like to do with it?

Totally depends on our situation. I'd probably be really boring and stick it on the k my mortgage

I have never understood why people say that the charge is usually very low like 1-3%. I would pay the whole £40k of the mortgage and be happy with a £1200 fee.

Just to say to those saying let my dh decide- I won't and can't spend his money, we've been together 25 years with 2 kids and a mortgage, we used money from my family for house deposit- we're a team and will decide together for our family but obviously the money is his ultimately.
Thanks to those with practical advice, will definitely invest some, maybe get an add on room too.

It can make more sense financially to keep the money in a savings account earning interest and then pay the mortgage down once the penalty period ends. Depends on all the interest rates and the actual charge.

Spend 10k and save 30k

10k in premium bonds
10k in stocks and shares isa
10k in a savings account