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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To ask what you would do with 30,000?

123 replies

Beautifulblue · 06/10/2018 18:05

DH's nan has recently passed away, his recently found out she has left him part of her estate which is estimated at around 30k. We've never had this amount of money before & it is truly huge for us. We have a 1yo & recently found out we're expecting our 2nd child, we're mid 20s. We're likely to never see this much money again so are wracking our brains to think of a way to maximise it & really set ourselves up. So what would you do with 30k?

OP posts:

BarbarianMum · 06/10/2018 18:34

What seven said.

ginghambox · 06/10/2018 18:36

3 decent holidays.

SleepyMcEdie · 06/10/2018 18:37

Yes bank it ready for a house deposit when you are able to get a mortgage.

BitchQueen90 · 06/10/2018 18:37

Personally I would use it as a house deposit as I'm currently renting and trying to save for one.

MynameisJune · 06/10/2018 18:40

I’d pay off your debt as none servicing those debts when you’re on mat leave will help. Then I’d put the rest into premium bonds until you can afford a house. You’ll lose so much in depreciation on a car and most new business don’t work out so I wouldn’t gamble it on that.

Musseswoofles · 06/10/2018 18:44

Absolutely house deposit, no question. Where in the country do you live? That should serve you at least a 10% deposit anywhere out of Zone 4 London!
Don’t blow more than 6k on a car. Buy a solid second hand family car out right and don’t fall into a pcp debt trap.
Pay off the 3k but honestly you can still get a mortgage easily with that kind of credit card debt.
ISA till you’re ready for the house. The rest in premium bonds.

CharlotteWebb · 06/10/2018 18:45

I'd put it in an ISA

Bearbehind · 06/10/2018 18:45

I'd put it into premium bonds until you are back at work and can apply for a mortgage.

Like you said, it doesn't go very far these days and it would be very easy to fritter it away.

You weren't expecting, you would have had to manage without it so keep it for something that will really make a difference and, if you are renting, that's buying your own house.

HollowTalk · 06/10/2018 18:46

You will never be able to save that money for a deposit. If you fritter this away then you are telling yourself you'll rent for the rest of your life.

Original poster

Beautifulblue · 06/10/2018 18:46

We're in East Sussex!

OP posts:

MrTrebus · 06/10/2018 18:46

Course you can get a mortgage silly Billy. Go And see a financial advisor or trustworthy mortgage broker. Buy a cheap new car with 5 doors. Enjoy.

MrTrebus · 06/10/2018 18:47

You don't need to be back at work to apply by the way

Buggeritimgettingup · 06/10/2018 18:47

Mortgage for sure

bigKiteFlying · 06/10/2018 18:49

Use it as a house deposit - either now after talking to a mortgage broker or put it somewhere you can’t dip into it - for a future deposit or as the start of one.

Or pay down debts and lock the rest away so it isn't frittered away.

MLMsuperfan · 06/10/2018 18:50

Take 2K to have fun with, pay off your debts, put the rest in an ISA. Either for a deposit later or as a rainy day fund. Wouldn't it give you peace of mind to know you wouldn't be sunk in the event of job loss or some sudden expense?

TheBeastInMsRooneysRoom · 06/10/2018 18:51

We had a similar situation without the bereavement. What we did was use it as a deposit and based our mortgage on DHs salary only. We did move areas to facilitate this. You might not need to. When I eventually go back to work (we're now thinking a couple of years, as we are fine!) we might negotiate a larger mortgage, or we might just pay this one off at double speed (we are able to do this under our ts & cs) and then keep this as a rental property and start all over again. Could £30k get you a Buy to Let deposit on a place that would be too small for all of you but provide an income?

HollowTalk · 06/10/2018 18:53

What's your joint income? What's the cheapest place you could buy there?

Frazzled2207 · 06/10/2018 18:53

Pay off the debt first, buy a bigger car outright (but not a shiny new one) then try and get a mortgage.
Being pregnant and going on ML shouldn't make any difference. At least not with some lenders.

Banamara · 06/10/2018 18:55

Well for what it is worth I would pay off the debt first. Then have a little holiday say 1k somewhere nice in UK. Then trade in car for a four door (essential with two kiddos and car seats!), but don't go mad, just get something sturdy and reliable second hand.

So that would be what.... 8k or so? Then put 2k in a rainy day fund, and use the balance of 20k for your deposit.

Nan would like you to enjoy her generosity, so do your best to cover all bases! Debt is number one, it is costing you every month.

I wish you well my love.

ElspethFlashman · 06/10/2018 18:57

Always always ALWAYS pay off the debt. It's just accumulating interest, it's financial stupidity to ignore it and go around buying cars.

Tbh whilst you will need a car I would be very conservative in that area. Cars depreciate faster than anything. Get a cheapish 2nd hand Japanese bulletproof unsexy boring car with no more than 50000 miles on the clock.

We have inherited money and we sat on it and made cautious decisions. We still don't holiday abroad, for instance. We have yet to change our car, though we need to soon. You rarely if ever get to inherit money twice. This could be the only windfall you ever get. So think very long term and be frugal with it.

Original poster

Beautifulblue · 06/10/2018 19:00

We don't have a large income, at all. I don't think DH would be accepted on his income alone. Think below 2k combined monthly. Have only looked briefly into house prices but without speaking with a mortgage advisor I have no idea what figure we'd be working with. My mum has offered for us to move in with her for a few months before baby 2 arrives. We could save 800pcm rent by doing this, it wouldn't be ideal but long term could really help us. Not sure how long it will take for this money to come through either? It is dependent on a house sale, so it's anyone's guess. Will definitely be speaking to a mortgage advisor soon though & get as much info as possible & go from there. Thanks for your advice everyone.

OP posts:

snowone · 06/10/2018 19:00

I would definitely pay most of it off my mortgage and maybe save 5k for a really nice holiday or something like that

Allegorical · 06/10/2018 19:03

Use is as a deposit. If you can’t get a mortgage. Put it in savings until you can get a mortgage. Personally I would wait a year in case house prices drop due to brexit. But do your research on that As I am no expert. Do not spend on things like a car. It will disappear before you know it. This is your one chance to get on the property ladder. Don’t blow it.

ChocolateChipMuffin2016 · 06/10/2018 19:03

If I was in your position I would pay off the debt and then put the rest in a locked away, high interest savings account for a house deposit for when you can get a mortgage.
I would see a mortgage advisor just in case, to see if you could get one now or what steps you need to put in place (you might need more than you have for a deposit or better credit rating etc).
If you really want to spend some I would limit it to £2k (based on debt being £3k) as it would leave you with £25k.
DH and I already have a mortgage etc and for any windfall money we have a spend half, save half rule but it would be different if we didn’t have the house.

shiningstar2 · 06/10/2018 19:05

What hollow talk said. With a second child on the way and normal daily living expenses you will never get another opportunity like this to stop renting. If you use £20000 as a 10% deposit you could buy for 200000. That could buy you a 3 bed house in some areas and still leave £10000 to pay off dept/buy a car/have a holiday or any other priorities. If you live in a more expensive area it still gets u on the housing ladder or you could just use the whole £30000 as a deposit. Go for it op. Great opportunity to provide security for your whole family and one day even be in a position to leave a nice nest egg for your own kids. Money paid monthly into a mortgage comes back to you where as rent money is often similar in amount and lost forever. Congratulations on this great opportunity. Good luck.

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