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Original poster

To ask what you would do with £45K?

211 replies

fortunatelynot · 08/09/2019 10:45

Due to bereavement I have inherited £45K. I am 39, have my own mortgage of about £110K which is due to end in about 16 years.
I earn a reasonable wage, have a bit saved, but not loads and 1k in premium bonds. I have one credit card debt of 4K which I have on interest free card for another two years. I have two teenage children whom I largely support financially on my own.

I know it is not a completely life changing amount of money but would be interested to know what any of you financial savvy people would do to maximise the benefits. Thank you!

OP posts:
Getoffmylilo · 08/09/2019 11:27

Offset mortgage?

PookieDo · 08/09/2019 11:28

I rent from a HA and I don’t have any debt. I would save the money personally because in the future I could help the DC with their first houses. I don’t think £45k would help me buy a house because houses are so expensive here and I earn £32k as a single parent. I would upgrade my car but nothing flashy

Sparrowlegs248 · 08/09/2019 11:29

Buy stbx out of our house. Do you wa t to send 25k my way? Investment? Grin

Kahlua4me · 08/09/2019 11:29

We have been in your position and after talking with a financial adviser chose to put most of it toward the mortgage.

It saved us paying a lot of interest on the mortgage which ultimately leaves more money in our pot. The money that we are now not paying on the mortgage we pay into our saving account and both children’s savings accounts.

The best advice we had was to pay off your debts as that will save you paying interest.

easyandy101 · 08/09/2019 11:30

Some towards mortgage, some towards flat renovation

Rest on a van

Rent the flat, live in the van

BikeRunSki · 08/09/2019 11:30

Pay off credit card and other unsecured debts, then pay rest into mortgage.

PooWillyBumBum · 08/09/2019 11:31

So hard to tell without knowing your financial status in more detal.

What are your pensions like? Do you know what you're projected to have in 20 years? If you've not got a decent amount I'd be whacking the whole thing into a SIPP (spread however you need to stay under the £40k cap)

Are your earnings such that your teenagers will get full amount grant and loan should they go to uni? Or will you be expected to contribute?

If you've got a great pension and you won't need to subsidise university:

  1. Pay off credit card debt - £4k
  2. Stash whatever 6 months expenses is so you never have to get into CC debt again - say £12k as a guess.
  3. £20k into a S&S ISA for long term savings (would go vanguard or similar index fund) - in 10+ years you will LOVE yourself for this
  4. £9k how you choose - home renovations/travel/whatever - something to make you feel the benefit of the windfall
PooWillyBumBum · 08/09/2019 11:31

The above is all assuming you have a decent mortgage rate. If it's under 3% I wouldn't consider overpaying right now, if it's over 3% I probably would.

ThumbWitchesAbroad · 08/09/2019 11:32

I would immediately pay off the credit card debt to avoid further interest payments, then I would £10k into savings and the rest I'd use to reduce the mortgage payments if you can do that without incurring any interest penalties.

PooWillyBumBum · 08/09/2019 11:33

PS think you're much better posting this on the ukpersonalfinance reddit or one of the MoneySavingExpert boards than here!

Fluffycloudland77 · 08/09/2019 11:33

I’d pay the cc, put the rest on the mortgage.

dudsville · 08/09/2019 11:33

I'm too tight with money to use something like this on holidays and cars etc.,

I'd pay off debt
I'd go through my property with a fine tooth comb identifying the repairs that are needed and schedule these in.
I'd put 5k into my account so that I didn't need my credit card
The rest I'd put on the mortgage

LucieFurr · 08/09/2019 11:35

I'd reduce the term of the mortgage, have a cheap holiday and save the rest

TheGoogleMum · 08/09/2019 11:36

I would pay off non mortgage debts, do something fun to enjoy the money like a nice holiday, use the rest towards mortgage

MamaGee09 · 08/09/2019 11:37

I’d pay off my mortgage ,only got 6 years to go, get an extension, have a family holiday and save the rest.

For you I’d clear the debt and pay a huge proportion to decrease mortgage payments and term of payment. I’d put £5000 in a savings account......just incase.

Piratefairy78 · 08/09/2019 11:38

3 years ago we were in this same position at the same age. Our mortgage was slightly smaller though. Paid off the small amount of debt we had and extended our house - 3 bed to 4 so each DC can have their own room. Kitchen and bathroom completed. We now overpay the mortgage so it will be gone by the time we’re 48. Such a good feeling living in house which now feels right for us as a family rather than a house which we’re making do with until we have the money to do what we want to.

Mintjulia · 08/09/2019 11:40

Clear the credit card and use the rest for the mortgage.

If you knock it off the mortgage, it will make every month for the next 16 years better.Smile

trilbydoll · 08/09/2019 11:40

Credit card
Whatever you can pay off the mortgage without incurring early repayment charges
(reducing the term not the monthly cost)
£5k into premium bonds
The rest into your pension if it needs a boost.

EscapeTheOrdinary · 08/09/2019 11:40

I’d clear the credit card and any other debt, plan a nice holiday and put the rest in savings. We were loaned our mortgage deposit from parents with an interest free low repayment which has really helped us so I would aim to do the same with the savings for any dc if they needed help and send their repayments straight back into the savings so when retirement came round the money would hopefully still be there making later life more comfortable

EscapeTheOrdinary · 08/09/2019 11:42

*any other debt except mortgage just because you will be below pension age when it clears but have the money there to tide you over if for any reason you couldn’t keep up with mortgage

Snugglepumpkin · 08/09/2019 11:45

Clear any debts which incur interest - overdrafts, credit cards, hp etc..
Put the average amount of money you live on over the course of one month into your bank account so that from now on you are living on 'old' money - most people are living on the money they got last pay check but it's better to live on the pay check before that to give you a buffer if you can.
Put aside £5,000 in a high interest (if you can find one) account as a rainy day fund for emergencies such as car repairs, white goods replacement etc..
All the rest straight into the mortgage.

Sue2019 · 08/09/2019 11:46

I would put £15k into a savings account for each of the kids for when they are ready to buy first homes or need it for something big / important. Then keep the rest in savings or pay off some of the mortgage if it were possible.

Marnie76 · 08/09/2019 11:51

I would take advantage of the interest free on the credit card but put the full amount you owe in a deposit account and use this specifically to pay off the debt.
I would take the kids on memorable holiday, one day you can look back at the photos and fondly remember the loved one that paid for it.
I would put some money away for the children, for a car/uni/house deposit.
Then i would keep some as rainy day money.

gamerwidow · 08/09/2019 11:52

Pay off credit card
£5k-£10k on treat items e.g. holiday, new tv etc.
£5k savings
rest on mortgage

lastqueenofscotland · 08/09/2019 11:53

Pay off credit card and a huge chunk off the mortgage

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