Spare lump sum - WWYD?

[FlouryBap]

I would appreciate some perspectives on what I should do with a spare 10k I have. For context - I am a single mum who has bought a small house post divorce. I have three kids - 12-16. I am ok for pensions, have some long term savings as a back up in case i lose my job and have a slush fund for rainy day stuff. I now earn enough so that i can get through each month and make small savings for nice things like modest holidays.

As I am a worrier I have been keeping some money available but I am now thinking I should do something with it as nothing terrible has happened. It is about 10k and the things I am thinking about are:

-dump it into my mortgage when my current low fixed rate is up next year (It will be around 55k when i need to get a new mortgage)
-do some non urgent house improvements. my kitchen is serviceable but could be updated to make it better
-get solar panels. I would not be doing this as a money saving exercise, but for sustainability reasons (as well as lower bills).

I would be really interested in some opinions to help me think this through.

Will your kids go uni?

Some of them will. We are in Scotland so (hopefully) no tuition fees. Also, their dad and I have been saving since they were wee for to cover parental contribution

I would get some costings for the house improvements. You have brought the house and have a mortgage on it. You are intending to live there long term, I presume, so make the home how you want it to be.

Look at where you could put the £10k for now... such as in a savings account / fixed rate Cash ISA, or if you determine that this money is for longer term use, rather than within the next few years, then look at Stocks & Shares ISA.

https://ukpersonal.finance/flowchart/

I like this chart in helping identify options

You could do something like spend half on the kitchen and half off the mortgage when the fixed rate is up?

What do you do about cars? Do you have savings for when it will need replacing or could the money go on the next car you need instead of finance? Or are you expecting DC to be learning to drive and buy and insuring cars? Three rounds of that in a few years will cost a fair bit.

It sounds like you're in a reasonably comfortable position which suggests that, whatever you do with the money, you'll probably build up savings again fairly quickly.

If you are not sure stick it in a trading212 ISA account which pays 5.2% (daily) while you decide

Thank you all! This has done just what I needed to move my musings along. @Slimeblimeclimb i like that chart.

@nannynick and @Bjorkdidit i think you are right about spending some of it on the kitchen. I don’t think it will take all of that and will make a big difference long term.

i haven’t thought about cars as they don’t feature in my thinking 😬I have the battered but serviceable family car in the separation (because my ex wanted a better one). I figure I will just drive that until it falls apart. I don’t use it much expect for a few big trips a year.

it is currently in a decent cash isa where it has to stay until August to get the good rate. I am going to get some kitchen coatings between now and then to see where that leaves me

Throw some into Bonds, easy to take out if needed and small chance could win some money or if your super lucky win a million 😂