20k inheritance. WWYD?

[Potterurotter]

Hi all, I’m 28 and recently came into 20k inheritance. I am torn what to do but know I don’t want to fritter it away.

I live with my partner. He owns the home we live in and he has 100k+ equity. We are looking to move to a bigger house in about a year or so.

I don’t know what to do with my money. I always wanted a property of my own to rent out and keep as long term investment. Was looking at student houses with buy to let mortgage I could buy around £80k mark so not sure if viable for good return as would likely be a two bed, three max otherwise would rent to a couple or so (non-students). My partner thinks it would be best if i just put the money into paying off his mortgage giving us more equity when we move.

Can you advise what is best? Open to other suggestions.

When you move to a new house in the future will you own half of it?
Will you be getting married? If not!
I wouldn't risk paying off your Dp mortgage with your inheritance.
I would keep it safe for now until your Dp is employed and then I would look into buying a house to rent!
My son had a nest-egg 20 years ago when he was 20. He was going to blow it going around the World but I persuaded him to buy a two bed terrace.
He now has four rented out and all, including his own house will be mortgage free in the next 5 years.
I'm not suggesting that you aim to have more than just the one, it's not all plain sailing, you get bad tenants and you will need enough to pay the mortgage and council tax between tenants and you need to upkeep them.
Ds does improvements on all his every year. But it's always nice to have you're own money as long as it doesn't cause problems between you and your Dp.

Well, if you're in it for the long term, you might as well help him (and each other out).

Sounds like you're in a very good pension scheme so I'd go down the lifetime ISA route and stick the rest into an ISA until you're ready to buy.

With a 60k mortgage and 5% rates would be £4,750 a year mortgage. Allow £1,500 a year for maintenance, insurance etc. more if you have an agency
Allow 11 months income a year for voids. Income tax on rental income. You need over £600 a month rent to breakeven.

Seriously book in to see a good financial adviser. It is their job to assess your situation. Attitude to risk. Future life goals and will find a solution that meets your needs.

I know everyone wants to help but even a qualified financial advisor can't offer a solution without a full fact find.

No way would I pay off 20k on someone else's mortgage.

Stick it in PB's until you decide

It's like having 20 thousand lottery tickets.

I invested a similar amount in them w few years ago.

Small wins most months

Hello advice please? I have 40k and don't know what to do with it. I've put it into a fixed isa which expires this year.

I don't own property & am self employed so live with family instead. I used 10k to pay off debt & buy a car so have 40k left.

I'm wondering what to do with it when the ISA expires this year?

I'm not working at the moment due to maternity leave. My partner is also self employed so the chance of us getting a mortgage any time soon is limited.

WWYD?

Whoops sorry I meant to start a separate thread!!

Mum if you don't want to buy a house then invest it in a pension or S&S ISA (or half and half and half).

What's a S&S ISA?

Do not give your partner the money.

Mum, S&S stands for stocks and shares.

You might like to see an independent financial adviser. Your options could be LISAs if you intend to buy a property in a few years or just for retirement, S&S ISAs or a pension. But you'd need to sit down with someone that can go over your circumstances and plans for the future and suggest appropriate investments.

Before me and DH married, I did spend £30k paying off his mortgage. However, I got him to do a written document declaring a trust saying that we now owned the property 50/50 (I was putting in the same amount as his deposit). It's not something that I'd recommend because if we'd broken up it would have been difficult to get the money back. At the time I assumed he'd be able to remortgage and pay me back if necessary, but his freelance work started drying up after I did that so I don't think he could have done. Anyway, it all worked out for me as we got a much cheaper mortgage as we had a better loan to value ratio and ended up getting married, but I really wouldn't advise anyone else take that risk. I felt like I knew he was the one, but I'm sure a lot of other people think that and then break up...

I also wouldn't recommend having your name put on his mortgage if he offers that as a form of security. I have a friend who did this, the relationship ended and he repaid her the money she's put in, but now she can't get any first time buyer benefits (eg help to buy ISA, cheaper stamp duty etc).

I'd probably say the best thing would just be to put it in a regular ISA for the time being whilst you see what happens.

Stick it in premium bonds until you have worked out a plan.

Speak to a financial adviser regarding your financial goals etc.

Do not under any circumstances pay off a chunk of your boyfriend's mortgage. You're not on the deeds so will not be legally entitled to any proceeds from a sale. He could dump you tomorrow, get another partner and you'll not see your £20k again. The fact that he wants you to pay off £20 of his mortgage says a lot imo.