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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:

Treacletoots · 07/10/2018 07:38

Ordinarily I'd say house deposit, house deposit! But from what you say you couldn't afford the mortgage either way then that's pointless..

I'd favour you starting a business. I started one from no investment and thinking back if I'd had your sort of investment it would have been incredibly easier. Don't listen to those who say you can't. You can :)

Personally wed buy a gite in France but we're in different circumstances to you.

Good luck and enjoy.

Missingstreetlife · 07/10/2018 08:06

Putting your savings in someone else's name is fraud, depriving yourself or deliberately disposing of it in order to claim will disqualify you. You are expected to live on it instead of getting income based benefits. Also how will you get it back if your mum or whoever dies or becomes ill. I t will be classed as theirs.
You are allowed £6k before you have to worry. The max limit is £16k and the benefit is tapered before this. However if the house has to be sold you have time to think, and the estate may not be distributed straight away. Exceptions are debts and buying a property, or essential furniture, things you need to live. So you can avoid this problem
You should pay your debts, buy a car only if you need to. Then unless you can get social housing 100% look at buying a property. Portslade is still affordable, look at shared ownership and help to buy. After you pay the deposit and allow for furniture and repairs it's way cheaper and more secure than renting and you end up with something to show for it. Yes, see a mortgage broker, a financial advisor won't be interested and will be on commission, your bank can give advice on savings for the short term but a help to buy or lifetime isa is a no brainer, the government give you money to top it up.. Look at Martin Lewis, money advise sites. Spend a small amount on something fun, a holiday or nicer bed than you would usually buy, keep a few grand for emergency and enjoy. Don't let it overwhelm or worry you, take it steady.

AJPTaylor · 07/10/2018 08:33

Pay off credit card.
Lock the rest of it on Voldermorts Vault until your income improves and you can get a mortgage.
That is probably what his nan would have wanted.

GloomyMonday · 07/10/2018 08:50

I'd use £2000 for a holiday, £3000 to pay off the credit card debt, £5000 into an accessible savings account for emergencies, and £20k towards a house.

If you can't get a mortgage right now, invest £20k in a Lifetime ISA. For every £4K you put in, the government give you £1k. But the money can only ever be used for a house.

Unihorn · 07/10/2018 08:55

Just be aware that you can only put £4k in a Lifetime ISA per year and they can only be used after they have been opened for a year, so please bear that in mind. You also have to use them before turning 40 and ONLY for a house deposit or you will receive a penalty.

Both of you should put £4k each in one now and then another £4k each after April. Then by next November you'll have a free £4k to put towards a house.

Camomila · 07/10/2018 08:56

Car can wait...we have a 2 door nissan micra and it's fine. Just don't get a massive travel system.

If you can't get a whole mortgage 30k is probably enough to get a shared ownership place. Also (if it were me) even if I could only get a mortgage on a 2 bed flat with no garden I'd jump at the chance.

Original poster

Beautifulblue · 07/10/2018 10:54

We'll definitely be paying off the credit card. We'll also get out of our over drafts so that'll take us down to approx 25k. Then we will definitely look into using the rest for a mortgage if we can, I'll look into our options. We may use 4K (& hopefully 1kish from the sale of our current car) to get a new car because it's already a tight squeeze with 3 of us & I really can't see it working long term with 2 car seats, a buggy & 2 adults. So say 20k towards a house deposit. Thanks everyone for the advice! It may be a matter of months before we see this money so I we'll do a lot of investigating in the mean time!

OP posts:

MrsClayneCrawford · 07/10/2018 11:17

My FIL passed away a few years ago & my DH (& his DB) inherited a few grand. We paid off our debt, went on two nice holidays & got a new car. I was able to hand my notice in at my horrible job & we now live comfortably on what we have left in the bank & my DH wage. It's a nice feeling not to have any debt.

Asdf12345 · 07/10/2018 11:20

We would add it to the house deposit fund.

Cornishclio · 07/10/2018 11:43

I would use it to start getting your finances on track. Sussex is not a cheap area though so I would hesitate that you will be able to use this and only this as a deposit particularly if your DH is not on a high income and you are on ML. Paying off interest charging debt is a good start. Opening a HTB ISA or LISA is another thing you could do. If you do use some towards a car don't go mad and pay for a really expensive one. Personally I would hold fire on buying a house though until next Spring after Brexit and the initial effects of that and there won't be much on the market now as no one wants to move before Xmas. I would not bother with a holiday with a young child and if you are pregnant. In my experience travelling with young children is akin to torture.

Original poster

Beautifulblue · 07/10/2018 11:52

@Cornishclio - In my experience travelling with young children is akin to torture.

I agree 😂 - a holiday is not even tempting.

OP posts:

Fragolino · 07/10/2018 12:39

Rather than blowing 2 grand on one holiday it would be much better to use 2 grand as a savings basis for future holidays.
2 grand on holiday is a hell of a lot of money when you don't have any.

Far better to add to that by a little each month.. Have cheap self sourced little breaks... That cost little and keep the pot rolling.
It's a nice feeling to know yiu can say.. Let's go on one night away, Premier Inn even..

But.. If emergency happens you still have that two grand..

BadLad · 07/10/2018 13:19

Casino. All on red!

Original poster

Beautifulblue · 07/10/2018 13:33

@BadLad 😂😂 we did discuss that the other day!! All on one number. Imagine if it came in... but then imagine when it inevitably didn't! 😂

OP posts:

BikeRunSki · 07/10/2018 13:35

We inherited £30k from dg’s GM. Then DH got made redundant whilst I was on maternity leave a s that is what we lived off. At least I didn’t have to go back to work too soon.

Saltedcaramelcake · 07/10/2018 13:45

I'd put it towards a house deposit or towards trading up to a bigger house if it was me. It's sensible and boring but I think if it was me who had left money to my family is be pleased it was put to good use rather than blown on things like holidays etc. If you aren't in a position to trade up house/buy I'd get some proper advice and store it away somewhere safe. I don't think you'd make much interest at the moment but I'd want to lock it away where I can't touch it for daft things. (Obviously get rid of any debts incurring interest first too).

God I'm so boring, should have asked me the same thing 10 years ago haha!

Original poster

Beautifulblue · 07/10/2018 13:49

@Saltedcaramelcake
I dread to think what I would of done with it 10 years ago! Probably driving round in a 20k car, with a 10k handbag & a quid in my purse 🤣

OP posts:

FerryLaugh7 · 07/10/2018 15:44

If you lived with your DM it would take you atleast 3 and a bit years to save 30k. There are not many opportunities in life when you would probably receive a large lump sum of money. I would definitely buy a property. You will also need money for survey, solicitor fees, mortgage arrangement fee, land registry. It is easy to buy smaller items like a car or holiday. It is more difficult to buy a large item like property. Seek free advice from a financial advisor or broker, some estate agents have free financial advisors

Original poster

Beautifulblue · 07/10/2018 16:20

Thank you @FerryLaugh7 I will do that.

OP posts:

dementedma · 07/10/2018 16:24

if i had a 30K windfall I would get the roof fixed and a new front door, pay £10K off the mortgage and enjoy what little was left.

Missingstreetlife · 08/10/2018 18:12

I think a lifetime isa can be used towards pension if you don't get a house. Also you can take the money out, you just won't get the government bonus. It's still your money!
Think about whether you want to maximise the benefit by having an isa each and saving as much as poss quickly (there are rules and limits, look them up). Or whether dh wants to keep money in his name till you buy the house. Depends on your attitudes to mine, yours and ours. Later on you will think about wills and life insurance, but you're doing ok for now!
Estate agents do not have financial advisors ffs, they have mortgage brokers. No need for financial advisor unles you want to invest spare cash.

GloomyMonday · 08/10/2018 19:26

You can actually lose some of your own money on a Lifetime ISA if you don't use it for your first home or pension.

The government pay you a 25% bonus, and ask for 25% back if you use the money for something else.

So you could put in £4000, receive your 25% bonus, have £5000 total invested, then have to pay back 25% of £5000 (£1250) if you draw it out for anything other than a home/retirement.

But if you definitely want a first house, and won't need funds within the next year, then I don't think there's a better rate of return anywhere (you'll get interest from your lender too, on top of the government bonus).

Tunnocks34 · 08/10/2018 19:34

I would pay off our credit card, pay for our wedding (not excessive) and then probably spend £2000 on treats and pay £20,000 off on the mortgage

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