Savings Advice

[K0729P]

Hi all, first post so please be kind! I've been a long time lurker and I know how helpful you can be.

Without giving away too much info that would be outing I received a lump sum a couple of months ago that has been sitting in my ISA, due to job changes etc I'm now £200 a month worse off and is causing some financial strains each month (using some of savings to fill the void).

I was planning on keeping this lump sum approx 10k in the ISA to help towards a deposit for a house (however, due to current salary a mortgage will still be about 9-12 months off).

I do have a loan of approx 7.5k which is just under £200 per month. Just looking for confirmation that I'd be doing the right thing by paying this loan off using my savings, therefore giving me my shortfall each month back and putting me in a better position.

Within this job I do have quarterly bonuses which could be approx 1.5k each quarter, so my plan would be to use this to top up my savings when received.

Is there something blatantly obvious that I am missing that should mean I keep the lump sum in my savings??

There's probably loads of options .... But I'd go for the best short-term option. So clear the loan, cancels out the £200 deficit &'payment. Then start building up savings again when you can.

assuming it is a help to buy ISA, then I think you need to keep the cash in it and do as you say.

If it isn't, then the interest rate may be even worse than you would get outside an ISA. Whatever it is, the interest on savings is much lower than you are paying on a loan so clearing the loan makes sense - as long as you still have an emergency fund or will have one again quickly.

Thanks all, just needed some extra confirmation before I done anything!

The savings I've left will now be going in to Help to Buy ISA.