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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
YouJustDoYou · 08/09/2019 16:06

Pay off all debt.

avocuddl · 08/09/2019 16:11

I'd pay off credit card and use the rest for a deposit for a buy to let

cacklingmags · 08/09/2019 16:24

Pay off the credit card asap

sophiasnail · 08/09/2019 16:26

I was in a similar situation recently and paid off our mortgage. We now have a couple of hundred pounds spare per month that we didn't use to have, which is really, really nice! The people telling you to pay off 10k of the mortgage and put 25-30k into savings are giving you unsound advice, unless you can find a savings product with a better interest rate than your mortgage (which is very, very unlikely in the current climate).

It would be a good idea to see an IFA if you are not confident to crunch the numbers yourself.

Original poster
fortunatelynot · 08/09/2019 16:28

Wow, thank you for so many responses, you lot are amazing!!

It has given me lots to begin to think about - looking closer at my mortgage, the interest rate is 2.3% and, as I changed mortgage providers three years ago, I am 'locked in' against making big over repayments for the next two years.

My pension is good (education) and I pay over £400 a month into it.

OP posts:
TanMateix · 08/09/2019 16:31

Children trust?

Alsohuman · 08/09/2019 16:34

Ignore the huge majority telling you to pay off the credit card. Paying a 0% loan early makes zero sense. Stash enough away to pay off the outstanding balance at the end of the 0% period. If you put it in premium bonds, it should yield you at least a couple of wins in that time.

SciFiScream · 08/09/2019 16:35

@fortunatelynot you can probably make a 10% overpayment each year without risking a fee. So you could pay £10,000 now and £10,000 in 12 months. This would put you in really good circumstances when it's time to remortgage.

MildThing · 08/09/2019 16:36

I wouldn’t pay off the interest free CC: I would put the £4K in more premium bonds until the interest free period ends, and pay it then.

paintinglady2848 · 08/09/2019 16:39

I would put most of it in savings. Our mortgage we would get charged if we made over payments over 10% so I would pay off the maximum amount without the charge.
I personally would pay off the credit card. 0% or not it's still a monthly payment you could do without.
Also think there is no harm in a little treat for yourself/DC. I would also put a couple of thousand in an savings account for them.

Sleepyhead19 · 08/09/2019 17:48

Pay my credit card
Put a couple of grand in each of the kids accounts
Pay some off the mortgage and keep some as emergency spending money

bobsyourauntie · 08/09/2019 17:53

It makes sense to be debt free even if it’s 0%, if you have the funds to clear it. It’s a nice feeling to be debt free. There is no point in having any sort of debt if you don’t have to. You never know what’s round the corner so always clear debts first.

and check your mortgage as you may be able to pay 10% . If you can’t pay any off the mortgage then sit on all of the mortgage funds for 2 years until you remortgage. You could put it into premium bonds if you want to keep it safe. It won’t grow but you might win.

Or if you are prepared to risk it, get advice from a financial advisor.

AMAM8916 · 08/09/2019 18:16

Pay off credit card, pay about £15k to the mortgage to take the term down, have a nice holiday, treat you and the kids and stick what's left (maybe £15k) into an ISA

Lindy2 · 08/09/2019 18:21

I'd do:
£28k off mortgage
£10k into savings/cash ISA
£4k to clear the credit cards
£3k for spending/treats

Alsohuman · 08/09/2019 18:26

I just don’t get this at all. We can pay cash for just about anything we want but if there’s a 0% deal we always go for it. Better to tie someone else’s money up for however many months than ours.

Ainsl · 08/09/2019 18:31

1.Pay off credit card
2.Pay the rest to mortgage

BarbariansMum · 08/09/2019 18:36

I'd spend some, save some and give some away. I've found that works well as a general rule of thumb.

clpsmum · 08/09/2019 18:37

But my arsehole of a stbxh out of the house and finally relax! And still have £35k left!

Frazzled2207 · 08/09/2019 18:41

I'd pay off the credit cards, take kids on a nice holiday and put the rest towards the mortgage (perhaps putting 5k or so in savings). In that order.

Derbee · 08/09/2019 19:19

OP, as your mortgage rate is pretty decent, speak to a mortgage advisor about a buy to let. You are certain to get income above the mortgage payment amount, you will get the capital appreciation over the next few years, or you can keep it forever as a pension top up. Long term, property is always a great investment.

BottleCrow · 08/09/2019 19:21

£5k into savings, £10k each for DC towards house deposits, £25k off term of mortgage

WhoKnewBeefStew · 08/09/2019 19:23

Pay off debts
Put a few grand away per child
Put a few grand away for emergencies
Pay the rest off the mortgage (keep repayments the same to pay off mortgage early)

IncyWincyGrownUp · 08/09/2019 19:33

I’d pay the debts then plough the rest into the mortgage. Fun money makes no sense when there’s a massive debt to be paid, and a mortgage is a debt.

HollowTalk · 08/09/2019 19:55

I know you're locked into your mortgage now, but I would heavily pay it off, particularly if you are teaching. Hardly anyone teaches for as long as they think they will - there's a definite bias against older teachers who are at the top of the pay scale.

HollowTalk · 08/09/2019 19:55

Pay it off when you can, I mean.