Better to get a mortgage or invest for income? patrickrjones

Hi. I have been lucky enough to get a lump sum of £74k from the sale of a business. Now trying to decide what to do with it.

Option a) could put it on a flat. But I live in London and my salary isn't enough to get a mortgage on a house that I could live in. Everything I've seen is too far out for me. So if I did put it on a flat, it would be an investment only and would still have to pay rent.

Otherwise, I could invest it for income, in stocks and shares. What do you think? Anyone chip in with suggestions or similar experiences? Cheers.


Unless it is your dream to build a BTL property portfolio, I'd suggest the S&S route will be much easier and give you a much better spread of investments. There is also P2P lending you could consider for some of the money.

The tax deal on owner-occupied housing is wonderful, the tax deal on BTL isn't.

If you don't think you'll want to buy a house in the next five or ten years then maybe an S&S ISA would be a good idea. But in your shoes I'd be tempted to keep a fair chunk in cash and play the much discussed game of using current account switches, high interest current accounts, and regular savers. Those combined with S&S might constitute a usefully diversified portfolio. You could even ensure that some of your S&Ss are related to residential property values.

You might also consider a Help to Buy ISA this tax year and a LISA in 17/18.

@ColdIron, no, no pension

@masonic @kidmugsy not interested in BTL. but would like to buy my own place later. what I was thinking was having a BTL would be good place to keep cash until i get a better salary and can borrow more. but more trouble than it's worth?

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