Inheritance/Mortgage
Discussion
Nice problem to have, but why put all your eggs in the one basket.
You could put half into the mortgage
40k between the two of you into stocks and shares Isa's and then same again after April next year.
Add in a couple of BTL's
And then treat yourselves to a couple of nice holidays/ new car.
You could put half into the mortgage
40k between the two of you into stocks and shares Isa's and then same again after April next year.
Add in a couple of BTL's
And then treat yourselves to a couple of nice holidays/ new car.
CrgT16 said:
I would sell your house and move to a bigger/better house with the same 300 mortgage you have now that you can afford. That said house would work for you and grow possible in a better and more secure way than anything else. In 10-15 years time if you want to cash in just downsize. You will probably find that net you will be better off.
This seems like a great idea to me. You can enjoy living in a nicer house/area whilst having a very good chance of a Tax Free, lightly-leverage capital growth over 15-20 years.I would be inclined to take a middle ground. Halve your mortgage amount in the new house, leaving a mortgage of £150,000, and a payment of £500 per month.
Leave £50,000 in reasonably liquid investments (cash)
Put £50,000 into a BTL (although if you take into account your house you would still be overweight in property)
Put £50,000 into pension plan.
Drip the pension plan cash, plus the £500 monthly saving into a pension. Drip feed in the pension money over at least a year, maybe 2 or 3.
When mortgage fix is up, when you remortgage take 2 years off the term, you'll barely notice, and if/ when mortgage rates increase, you can put the term back up at the next remortgage to keep payments the same or similar.
It's a nice feeling to have a chunk of cash equal to a year or 2 of after tax income sitting the ready if you need it.
Leave £50,000 in reasonably liquid investments (cash)
Put £50,000 into a BTL (although if you take into account your house you would still be overweight in property)
Put £50,000 into pension plan.
Drip the pension plan cash, plus the £500 monthly saving into a pension. Drip feed in the pension money over at least a year, maybe 2 or 3.
When mortgage fix is up, when you remortgage take 2 years off the term, you'll barely notice, and if/ when mortgage rates increase, you can put the term back up at the next remortgage to keep payments the same or similar.
It's a nice feeling to have a chunk of cash equal to a year or 2 of after tax income sitting the ready if you need it.
To me this would be an easy decision.
You have the opportunity to pay off your mortgage due to a very large gift. So your new property would be paid for in full. That gives you and your wife a lot of potential opportunities in the future.
IMO there isn't much point investing in the stock market if you are borrowing the money on a mortgage to do so.
Unless any investment is made inside a pension, by the time you take into account income tax and the mortgage costs, how much will you have actually made? And of course your mortgage would be payed from personal taxed income, which makes a big difference.
Again, IMO, at the moment there isn't much profit in small scale BTL. Unless you want to build it up and do it on a much larger scale, you will be taking on quite a lot of potential hassle will could eat up your free time for not much profit.
Hence why it is a straight forward decision for me. Purchase your new home, hopefully mortgage free, and use your future earnings for any investments.
You have the opportunity to pay off your mortgage due to a very large gift. So your new property would be paid for in full. That gives you and your wife a lot of potential opportunities in the future.
IMO there isn't much point investing in the stock market if you are borrowing the money on a mortgage to do so.
Unless any investment is made inside a pension, by the time you take into account income tax and the mortgage costs, how much will you have actually made? And of course your mortgage would be payed from personal taxed income, which makes a big difference.
Again, IMO, at the moment there isn't much profit in small scale BTL. Unless you want to build it up and do it on a much larger scale, you will be taking on quite a lot of potential hassle will could eat up your free time for not much profit.
Hence why it is a straight forward decision for me. Purchase your new home, hopefully mortgage free, and use your future earnings for any investments.
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