AIBU to ask what to do with this money?

[Swapsie]

I am a regular and have name changed.

I was unexpectedly left £10,000 in a relative's will. I realise this is an incredibly fortunate position to be in and I feel quite guilty knowing that others on the boards are having a really tough time of it finacially.

We live in a rented flat and DP has suggested that we use it as a deposit. I don't think it would be enough and our joint income is quite low (about 20k a year, plus some casual work) so we won't get much of a mortgage I'd imagine. 90k-100k would buy a one bedroomed flat round our way. DP seems keen to buy.

Even if we were to buy (somehow) the situation is complicated by the fact that we will probably have to relocate in about three years time due to work.

I am a bit worried that property prices could keep on falling and we'd lose this money and there is no chance of us getting that sort of cash again.

Any advice greatly appreciated and I know this falls under the 'luxury problems' category.

I would put it into savings until you move then buy a house with it. I would also try to add as much to it as you can.

I would buy. If you want to be home owner leaving it in an isa would be waste of time as you will also be wasting three years rent which could have been reducing mortgage, it is never a good time to buy always a better time around the corner and while yo are waiting your life is going. I have been house owner for 33 years and seen it come and go .As long as you are not buying in a boom you won't lose long term

Premium Bonds!!

Actually property would be a good way to go

I would take £1000 out of it and treat yourselves to a nice holiday and put the rest in an ISA.

Put it in an ISA or a notice account, you won't regret not having holidays when you are sitting in your own home in a few years time.

When I bought my current flat, the total cost of stamp duty, solicitors fees, new carpets and curtains, new furniture, repairs etc was about £20,000 by the end of the first year. That was at 1998 prices.

Don't buy unless you are going to stay for a long time.

Stick the money in an ISA and if you can start saving every month to top it up so in 3 years you have a bit more or a nest egg to put towards a flat.

Yeah, that's what I'd do. A 10K deposit will probably get you a property of, what, £100K? And at that, you'll be getting a uncompetitive interest rate because of your low level of deposit.

So you might as well save a bit more and get a better deal or smaller mortgage. If your DP is reluctant (or can't) to wait and save then I'd be a bit at committing to a mortgage.

Thanks everyone, great advice all round. I think it will be a fixed term ISA for the money and thanks for helping me pick my way through the house costs/buying forest.

If your income is only £20k and a flat would cost £100k and you have a £10k deposit plus enough to cover buying costs i still dont think you would get a mortgage as your income is too low.

Stick it in an isa and forget about it until you are in a better position to buy.