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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To wonder what to do with the money

103 replies

Quandary2018 · 12/08/2019 21:09

Parents have very generously gifted me 25k which, while a substantial sum of money, is not enough for me to use as a deposit on a house as I’m a single parent who works part time and I simply don’t earn enough to get a mortgage so- what do I do with the money?
Am thinking maybe some savings for the kids and a holiday but that seems wasteful so what would you do with 25k that isn’t mortgage related

OP posts:
Torridon19 · 12/08/2019 21:39

Don't blow five grand on one holiday - blow ONE grand......

Original poster
Quandary2018 · 12/08/2019 21:40

I have 2 kids- a boy and a girl- but they have a big age gap and can’t share a room.

As much as I would love to own my own home and not rent anymore it’s just not possible right now I don’t think

OP posts:
SuzieSunshine · 12/08/2019 21:41

I was going to suggest Premium Bonds as well - you can get it back out in about 3-5 days.

DogHasEatenTheSqueaker · 12/08/2019 21:41

Ask your parents to buy you 25k of premium bonds. Don't bank a cheque if it will impact your income, and not afford you an ongoing lifestyle change.

GU24Mum · 12/08/2019 21:41

If childcare costs are an issue, could you work more and use the money to help with that as you'd be building up pension etc and work experience.

Tistheseason17 · 12/08/2019 21:42

They could have a room each and you could sleep in lounge until things change - it is doable.

JoJoSM2 · 12/08/2019 21:43

If a house is 250k, then a 100k + the 25k deposit should get you a flat? Or shared ownership would definitely be an option with that deposit. In a few years' time you could buy the full ownership when you're working full time.

If you don't want to get a property now, put some of the money into a pension leaving you with savings small enough not to affect your benefits. The rest can go into a Lifetime ISA as you'll get a 25% government top up and can then use he money for a deposit or in retirement.

HappyParent2000 · 12/08/2019 21:44

Plenty enough for a shared ownership deposit, more than we had and we have a lovely 2 bed now. We even had left over for a shed and fitted wardrobes!

Don’t waste it on a holiday, get shared ownership!

BlueSkiesLies · 12/08/2019 21:47

House prices are rising where I live- currently around £250k for a 3 bed house in my area but most I can get on a mortgage is around £100k so I’m way way off

Then you can easily get a 25% share of a 3 bed under SO. Also you can still be entitled to housing benefit on the rental element.

Anyway, if not housing then I second a PP and use some of it to boost your qualifications so you can better support yourself and your family.

BlueSkiesLies · 12/08/2019 21:48

Not premium bonds, the effective interest rate is terrible

Be1atrix · 12/08/2019 21:48

I'd get your parents to put it in a ISA for you, in their name, so you can still get your benefits.

TowelNumber42 · 12/08/2019 21:50

Buy-to-let a tiny flat in a good location. New builds are ideal.

joystir59 · 12/08/2019 21:52

I agree with zurigirl

BoomBoomsCousin · 12/08/2019 21:54

Working full time is a good 6 years away because of the cost of childcare and I have very little left at the end of each month to save

If your work is of the type where you will increase in earning power with more experience then asking your parents to subsidize childcare so you can go back to work much earlier would probably be a good investment of those funds (assuming they are in a position to hold on the funds, so you don't lose out on your current benefits).

Putting what you can into your pension is also a good long term call.

Otherwise, if you drive and your current car isn't great, a new, fuel-efficient car with prepaid service could be a reasonable way to spend some of the money. A blow out holiday would, of course, be fun, but ultimately it won't leave you better off while your income is low.

Lovemusic33 · 12/08/2019 21:56

There are not many options, if it sits in the bank it will get eaten up as you will lose your housing benefit. You would be better off giving it back to your parents and getting them to put it into a savings account and then give you access to it again you nice your workers my full time (when kids are older).

Italiangreyhound · 12/08/2019 21:58

I'd be looking at three bed flats or two bed houses and exploring what options you get. i'd save it for when you can get a mortgage.

Derbee · 12/08/2019 21:58

Buy a house in a cheaper town, and rent it out. Buy to let mortgage will cost less than you’ll get in rent. Plus you’ll have the capital appreciation for when you sell in 6 years when you’re working full time and can buy a bigger house

Jaffacakebeast · 12/08/2019 22:01

I don’t think a buy to let would be feasible right now, you’d need the rent to pay the mortgage so could never be empty and you wouldn’t be entitled to housing benefit to pay your own rent as you would have your own house, shared ownership would be good if possible

HeadintheiClouds · 12/08/2019 22:11

Find a way of putting it into property, op, don’t fritter it away. Just get on the ladder, a two bed flat for a couple of years would allow you to trade up?
You won’t get your dream home straight away, but very few of us do.

ivegotthisyeah · 12/08/2019 22:19

Take the kids to Disney get it under £16k and put that into premium bonds then benefits won't be affected

Original poster
Quandary2018 · 12/08/2019 22:21

I really wish I could but the cheapest 2 bed flat is currently £175000 and I can’t get a mortgage of £150000 plus- really I’d need some money for moving/ survey etc so don’t have a 25k deposit.
Cheapest shared ownership within 20 miles is a 2 bed house for £255k so way more than I can afford
Maybe I should move areas but my son is about to start secondary school plus my exh is currently going through the family court for access so I don’t think I actually can just up and leave anyway

I don’t want to fritter it away but at the moment I think I’m going to have to give it back to my parents

OP posts:
Italiangreyhound · 12/08/2019 22:26

Why would you give it back, get them to put it in a high interest account for you. They want you to have it. Good luck.

Jaffacakebeast · 12/08/2019 22:31

i also wouldn’t rely on the 16k limit when you could be moved to UC at any time and their saving limit is much lower, personally I would have my parents put it in a trust, with £200pm sent to a help to buy isa and stop that once it gets to 6k. Keep the rest in trust, just draw for emergencies like car braking. Hopefully when you’re working full time you’ll be in a better position to buy and the gov will top up your isa by 25%

Anotheruser02 · 12/08/2019 22:32

Ask your parents to put it in a high interest account or premium bonds until you are in a position to make it really count.
I second the person that said don't spend £5k on a holiday, you would regret it. Ask your parents to book you a £1k holiday.

flappi · 12/08/2019 22:33

Save it all . Forget you have it . One day you WILL be able to get a mortgage , spend a grand or two on holiday if u must x

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