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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

If you were given £20k

108 replies

RandomButtons · 17/08/2023 00:33

if you were given £20k inheritance what would you do?

If you generally struggle in very hand to mouth existence, better off than many, I have no pension, we own a mortgaged house that isn’t really big enough, house also needs a fair bit of work done to it, DH has loan to pay for his car, I have student loan, my car is 13 years old.

Would you do up the house, move, or put aside to move? I’m worried DH will want to pay off his car loan to be debt free or just overpay mortgage, but I’m desperate to move so kids will have a bedroom each, and maybe even a second bathroom! I’m fed up with living on top of each other!

OP posts:
Kitkatcatflap · 17/08/2023 00:39

Will 20k be enough to move?

Can you not do up the most urgent parts of the house then you will probably get a higher price.

Maybe look at the room dividers for the children, so maybe not their own room but their own space.

Perhaps pay off a bit of the car debt?

ThreeLittleDots · 17/08/2023 00:40

Move/ upgrade, ignore student loan, sell car and get a runaround.

Personally I'd overpay our mortgage but we're happy here.

tt9 · 17/08/2023 00:44

Well it's your inheritance.... so you should use it, not your partner for his car....

I mean will an extra 20k get you a big enough house? if not, I would spend it on paying off some of the mortgage... will save you a ton down the line if and when your fixed rate runs out

Original poster
RandomButtons · 17/08/2023 00:44

Kitkatcatflap · 17/08/2023 00:39

Will 20k be enough to move?

Can you not do up the most urgent parts of the house then you will probably get a higher price.

Maybe look at the room dividers for the children, so maybe not their own room but their own space.

Perhaps pay off a bit of the car debt?

Not enough on its own, but we live in a cheaper part of the country so £20k goes further than it would in the Home Counties, we are at about 60% equity so if we increased mortgage we would afford a small 4 bed. We prioritised buying the house over everything else prior to having kids then I got made redundant/long story but only got back to same income level recently after 8 years, so it’s been lean few years.

OP posts:
HarrietJet · 17/08/2023 00:44

How would £20k be enough to allow you to move? It would hardly cover the moving costs, never mind finance an upgrade?

Blondewithredlips · 17/08/2023 00:46

Loft conversion?

calmcoco · 17/08/2023 00:47

Pay off debt and transfer the equivalent of the monthly to your mortgage or to a savings account.

Be honest - can you afford a bigger house?

Original poster
RandomButtons · 17/08/2023 00:47

Blondewithredlips · 17/08/2023 00:46

Loft conversion?

Sadly it’s not suitable apparently.

OP posts:
Original poster
RandomButtons · 17/08/2023 00:50

calmcoco · 17/08/2023 00:47

Pay off debt and transfer the equivalent of the monthly to your mortgage or to a savings account.

Be honest - can you afford a bigger house?

can we afford it - with mortgage rates going all over the place I wouldn’t do it right now for sure because everything can change so rapidly. If we remortgaged with longer term yes we could.

My thinking is more put it into savings and add to it to move.

OP posts:
Iouise · 17/08/2023 01:13

Off topic, but you have no pension? What will you do for money? Just state pension?

BernadetteRostankowskiWolowitz · 17/08/2023 01:23

HarrietJet · 17/08/2023 00:44

How would £20k be enough to allow you to move? It would hardly cover the moving costs, never mind finance an upgrade?

Eh? What a strange viewpoint. We paid 3k to the solicitors for our sale and repurchase, 1.2k to the EA and 800 to the movers.

So 25% of the OPs available funds, leaving her 15k to add to the equity.

calmcoco · 17/08/2023 01:25

RandomButtons · 17/08/2023 00:50

can we afford it - with mortgage rates going all over the place I wouldn’t do it right now for sure because everything can change so rapidly. If we remortgaged with longer term yes we could.

My thinking is more put it into savings and add to it to move.

Show quote history

The sensible thing to do is pay off debt first.

HarrietJet · 17/08/2023 01:27

BernadetteRostankowskiWolowitz · 17/08/2023 01:23

Eh? What a strange viewpoint. We paid 3k to the solicitors for our sale and repurchase, 1.2k to the EA and 800 to the movers.

So 25% of the OPs available funds, leaving her 15k to add to the equity.

Show quote history

No stamp duty?

Flyingalone · 17/08/2023 01:31

Moving homes is so costly! Taxes etc.

I'd pay off the car loan. As boring as it is.

Original poster
RandomButtons · 17/08/2023 07:34

Flyingalone · 17/08/2023 01:31

Moving homes is so costly! Taxes etc.

I'd pay off the car loan. As boring as it is.

But why should I pay off his car loan with my inheritance?

OP posts:
Original poster
RandomButtons · 17/08/2023 07:35

HarrietJet · 17/08/2023 01:27

No stamp duty?

Show quote history

Cheap area of the country. Stamp duty for a 4 bed would be about £3k.

OP posts:
Flyingalone · 17/08/2023 09:37

'But why should I pay off his car loan with my inheritance?'

Because in my relationship, all the money is ours.
I had a car loan, partner said let's pay it off.
With our money, no 'his or mine'.

Do you get a use of that car? Does he buy food with it; give you lifts?

Curseofthenation · 17/08/2023 09:46

I would use it for renovation work or put it into a private pension. I wouldn't use it to move in this climate and with your house needing lots of work.

vodkaredbullgirl · 17/08/2023 09:48

I would use 1/2 of it to pay off all my debts.

FiveShelties · 17/08/2023 09:53

RandomButtons · 17/08/2023 07:34

But why should I pay off his car loan with my inheritance?

Show quote history

My Mum died in May and the inheritance I will receive goes into our money for our benefit.

We pool our money, pay the bills and share the rest - we are a partnership.

ConsuelaHammock · 17/08/2023 09:56

Put it in an isa in your name only until you decide what to do. Some of them are almost 6% interest so that’s £1200 extra in a year.

AdoraBell · 17/08/2023 09:58

If you can afford a bigger house then do that, if not put the money in savings account take some to think about the best option regarding the house, pay a chunk off the mortgage or do some improvements, fe.

anotheranotheranotheranother · 17/08/2023 09:59

But why should I pay off his car loan with my inheritance?

Why would you be happy to put the money towards a shared house but not his debt? He benefits either way, I would definitely clear the debt but DH and I have always shared finances. If you don't have shared finances at all you should t be putting your £20k towards a house move without a similar investment from him.

anotheranotheranotheranother · 17/08/2023 10:00

Should NOT Blush

BarbaraofSeville · 17/08/2023 10:00

If you're currently living hand to mouth, will you be able to afford a bigger mortgage and possibly higher council tax and utilities? Unless you can move to a simililarly priced but bigger house that is?

Any chance of moving somewhere where you don't need a second car and one of you can walk/cycle to work? Or maybe a house that is cheaper to run, eg from an old to a new property?

How long does the car loan have to run?

Is a small downstairs extension doable and would it make a difference, eg toilet/shower room and more storage/utility/cloakroom?