Can anyone advise please?

[angelsnapper]

We are a low income family who have inherited £69,000. Paying off debts and some silly spending has left 44,000. DH and I both work low income jobs so were previously entitled so some universal credit but not anymore obviously. I want to protect what we have have left for my children. We are not in a position to get a mortgage and rent. To be honest I don't want to be able to touch it!! I'm so disappointed that it hasn't been put to better use. Does anyone have any advice?

Wow! This would be perfect for a downpayment on a property. Are you certain that you can't get a mortgage even with this significant downpayment? If so securing a property would be my priority.

If instead you want to put the money away I would do a combination of setting up a private pension, an ISA and some trust funds for the children. If you don't have a pension then this is a good way to put money in.

The trick is to put the money in savings right away - don't keep hold of it and use it for little things or it'll just trickle away. In the end you'll be glad that you put this in savings.

Thank you very much for replying, I do have an appointment with the bank but I don't think we have any chance of securing a mortgage of any size. If it was it might be just enough for a one bedroom flat at a push! I've heard quite a lot of scary stories that make me anxious about buy to let to invest that way but I will see.

I think your second suggestion may be the kind of option I will end up going for. I find all the different saving accounts baffling and don't know what's best to go for. I've also looked at premium bonds etc (money saving expert site!) As we are on a low income and need to be very tight with money I don't trust myself having it easily available.

You are so right about it trickling away as so much has gone that way already, I just wish I had done it sooner. .

Have you paid off all debts including things like car loan?

Keep 6 months of household salary equivalent in easy access. This means very low interest but it is liquid, you can get it fast. A mix of interest paying current account and premium bonds is what I use for this.

Then look at ISA wrapped tracker stocks. I am just beginning to do this, it scares me but to get any interest you need to take risk.

Have you considered a buy to let mortgage instead for investment purposes?

We are have been fortunate to be in a position to buy a property for our daughter and rent it out. The money left after the bills are paid goes into her savings fund each month and it's an appreciating asset until she is ready to decide what to do with it.
I wasn't able to get a mortgage to start off with either - due to personal circumstances at the time so I joint ventured with a property investor temporarily where I paid the deposit and they got the mortgage for 3 years, by which time I was able to get a mortgage myself and 'buy the other person out'.

If you are wondering about security of your deposit you can place a restriction on the property so it can't be sold or secured loans placed on it etc without you being notified first - but we had a contract in place also.

Just a different spin on things for you to consider, especially when deposits for Manchester and North East England area can be as little as 25k.

Good luck.

There are no savings accounts ahead of inflation - all are low interest. Hence it will vanish. So you need to look at long term investment, pensions and so on. Forget inheritance.

Paying off all debts was very wise. What was silly? Learn from it.

Just put it in Junior ISAs. You won't be allowed to touch it. It could go into some funds. Read up on money expert etc so you don't get ripped off - some banks can charge extortionate fees. As it's in a junior ISA in your children's names, you won't have access to the money but you'll be able to manage it. I'd advise against any attempts at buy to let - you'd need to be pretty responsible and savvy + have substantial savings to do that.

Hi can anyone tell me about a declartion of trust and what needs to be written in it. Buying council with house with my partner I've got 78.000 discount and all that's left to pay is 87.100 which he is putting in. So no mortgage. I've stated that if we split up in future we will divide house by percentage as he is paying all legal fees so if anything did happen to relationship what he gets back in interest will cover what he's paid out. Do we also have to state in it that on event of death either of us stays in house until that persons dies. We both have grown children from pervious marriages.so I don't want to get kicked out if anything should happen to him first and reververser thanks I hope this makes sense