# Bank cash or pay off debt?



## dilemma124 (10 Apr 2014)

Hi folks,
Could do with some advice with respect to a potential lump sum inheritance/gift from a parent.
My circumstances are married, and both of us have a property apiece, once of which (mine) is rented out.
My dilemma is my parents are determined to gift me a sum of money to alleviate debt as they feel that the government will continue to increase levies on gifts from parents to children etc in upcoming budgets.
Both my spouse and I are employed, one securely, one not so, but either way we can service our debts/bills on our incomes at the minute.
One of us has little/no pension provision, we may start a family meaning one of us wil work less and also at some point we’ll look to buy a house.
So, if we receive the lump sum which of the following should we do, what are our options.
Pay lump sum off the property in which we live, from my parents gift, off a mortgage which was taken out in the name of my wife.
Pay lump sum off the property which I own, and rent out. As things stand the mortgage is being covered by the rental income
Just bank the cash in an account which I can easily access, but more than likely earn a shocking rate of interest, 2% or thereabouts, and try to put it towards the price of a house in time.
There are a lot of what if’s in my post/circumstances, but what would be the best option based on the facts? Or is there another option which I can’t see! 
Cheers


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## niceoneted (10 Apr 2014)

Without any details as to earnings what the houses are worth, what mortgages and terms are outstanding - including at what interest rates they are at, if you've other debts etc it is impossible to give advice on this


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## dilemma124 (10 Apr 2014)

Apologies,

No credit card/car/other debts.

Residential property.

We have no plans to sell, split between fixed and tracker
2.5% mortgage of 120k outstanding for 25 years.
3.5% mortgage of 90,000 for 15 years.

Rental property

Mortgage of 100k outstanding on interest rate of 1.5% for the next 25 years.


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## goingforgold (11 Apr 2014)

What are properties worth? How much savings do you have? What is value of potential inheritance? Any other debts?

We'll need more info in order to provide proper advice


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