What would you do with this money?

[123Yellow123]

I am being gifted £45,000 and am trying to decide what best to do with this.

Facts are:

• At uni building up significant student loan for another four years (mature student)
• Student loan will not cover full living expenses, so far have worked, but this may not be possible throughout, so need buffer accessible
• No other debt, incl. credit cards
• £20,000 in existing savings being transferred amongst debit and savings accounts and as of its introduction also into Help-to-Buy ISA
• Renting and as student no chance of getting a mortgage
• Really want to buy as soon as I finish and am again in position to get a mortgage and hopefully start a family

Would you just keep it in regular savings account? Premium bonds? Or what?

(Name changed)

Keep maxing out the ISA options just in case rates improve.

Don't buy a btl as you don't want the deposit for your home sitting in a rental property which may have fallen in value. Also everyone forgets to think about buying and selling costs when considering btl.

Keep an eye on your future earning potential vis a vis likelihood of repaying student loan. I think the cut off is 30 years from graduation for repayment, so as a "mature" student with a lower paid entry period and career breaks for family etc you may in fact not be repaying as much as you anticipate. OTOH, if you start earning £100k +, you repay pretty quickly and the interest roll up becomes less significant. There can be scenarios in the middle where it would be better to overpay.

Yeah I'm in the middle I think. Because my career is ultimately well paid, even if the beginning is dire, I will end up paying it including interest as I understand it from calculators.

Use some of it if needed to help with uni costs and put the rest in savings. That's what I'd do anyway. Oh I'd go on one nice holiday!

Sorry to hear about your father. My mum died a couple of years ago and my dad gave me and my sisters her pension payout. It really helped me. I bought a kitchen aid, fancy sewing machine, expensive print I love (all of which I think of her when I use/see them and I would not have bought otherwise) and the rest has gone on house renovations or savings to help with the upkeep of a new baby! It's meant I can have a reasonable length of maternity leave and hopefully return 4 days a week rather than 5.

This thread has made me realise that I should move the money as it's just in a bog standard account but I should probably use a chunk to pay off a bit of mortgage and open an isa. I've just been lazy!!

I second buying something tangible to remember your father . I inherited from my Uncle and think of him every time I play my piano or sit down to eat at my dining table.

What ever you do don't put it in a help to buy isa. As you can't use it for a deposit.

www.telegraph.co.uk/news/2016/08/25/help-to-buy-isa-scandal-could-have-been-prevented-with-public-co/

Take it to a casino and stick it on red. Might work out, might not.

the Telegraph article / campaign is a bit misleading. The issue is that the funds don't arrive until completion which creates a timing problem (banks / conveyancing lawyers can accommodate this but obs would rather not have to). This was to prevent abuse from people getting a bonus but then not in fact buying a house.