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    • caronoel
    • By caronoel 29th Oct 16, 8:59 AM
    • 774Posts
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    caronoel
    500k for under a year
    • #1
    • 29th Oct 16, 8:59 AM
    500k for under a year 29th Oct 16 at 8:59 AM
    Am currently remortgaging on my main home to do an extension next year.

    Cost will be about 600k, of which we need to borrow 500k.

    The money is expected to come through in January as the work commences, but we won't need to pay most of the cash to the builders until late 2017

    Any suggestions on where to invest the cash short term, to mitigate some of the mortgage costs until the works are complete?
Page 1
    • le loup
    • By le loup 29th Oct 16, 9:21 AM
    • 3,641 Posts
    • 3,572 Thanks
    le loup
    • #2
    • 29th Oct 16, 9:21 AM
    • #2
    • 29th Oct 16, 9:21 AM
    You are looking for short term savings - not investments. You need five to ten years for investments.
    For large amounts of short term savings, look at NS&I.
    • ColdIron
    • By ColdIron 29th Oct 16, 9:45 AM
    • 3,582 Posts
    • 4,292 Thanks
    ColdIron
    • #3
    • 29th Oct 16, 9:45 AM
    • #3
    • 29th Oct 16, 9:45 AM
    Agree, NS&I are the only practical game in town for you. As an extension of the treasury they are not known for haste so I wouldn't leave making arrangements until the last minute
    • bigadaj
    • By bigadaj 29th Oct 16, 9:59 AM
    • 10,736 Posts
    • 7,022 Thanks
    bigadaj
    • #4
    • 29th Oct 16, 9:59 AM
    • #4
    • 29th Oct 16, 9:59 AM
    Can you not delay drawing down the mortgage until you actually need it, would be a more profitable option I'm sure.
    • chucknorris
    • By chucknorris 29th Oct 16, 10:00 AM
    • 9,317 Posts
    • 13,973 Thanks
    chucknorris
    • #5
    • 29th Oct 16, 10:00 AM
    • #5
    • 29th Oct 16, 10:00 AM
    Can you not delay drawing down the mortgage until you actually need it, would be a more profitable option I'm sure.
    Originally posted by bigadaj
    That's exactly what I was thinking, also that is one hell of an extension, costing that much.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • caronoel
    • By caronoel 29th Oct 16, 2:34 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    • #6
    • 29th Oct 16, 2:34 PM
    • #6
    • 29th Oct 16, 2:34 PM
    Can you not delay drawing down the mortgage until you actually need it, would be a more profitable option I'm sure.
    Originally posted by bigadaj

    Tried that option with the bank but no joy
    • caronoel
    • By caronoel 29th Oct 16, 2:37 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    • #7
    • 29th Oct 16, 2:37 PM
    • #7
    • 29th Oct 16, 2:37 PM
    That's exactly what I was thinking, also that is one hell of an extension, costing that much.
    Originally posted by chucknorris
    Extra 800 square foot on an existing 3500 square foot area. Also need to replace the garage, and redecorate the entire place.

    500k sounds a lot, but it quickly mounts up
    • chucknorris
    • By chucknorris 29th Oct 16, 2:51 PM
    • 9,317 Posts
    • 13,973 Thanks
    chucknorris
    • #8
    • 29th Oct 16, 2:51 PM
    • #8
    • 29th Oct 16, 2:51 PM
    Extra 800 square foot on an existing 3500 square foot area. Also need to replace the garage, and redecorate the entire place.

    500k sounds a lot, but it quickly mounts up
    Originally posted by caronoel
    That still sounds an awful lot, even if you allowed a whopping 50k for the garage and decorating, that's still over 6k/m2 for the extension, that's a hell of a high spec, is there something very unusual about the plot/building? Or are you actually buying land adjacent to your property to build on?
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • caronoel
    • By caronoel 29th Oct 16, 3:09 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    • #9
    • 29th Oct 16, 3:09 PM
    • #9
    • 29th Oct 16, 3:09 PM
    That still sounds an awful lot, even if you allowed a whopping 50k for the garage and decorating, that's still over 6k/m2 for the extension, that's a hell of a high spec, is there something very unusual about the plot/building? Or are you actually buying land adjacent to your property to build on?
    Originally posted by chucknorris
    The whole interior needs redoing to be honest. The property currently has six beds, but most of them are odd sizes and not really usable. So the whole thing needs to be reconfigured and much of the roof will need replacing too.

    We bought the place out in the wilds of Surrey a couple of years back with the aim of doing it up as our dream home.

    Now is the time....

    As against all that, I do miss the buzz of London, but my clubbing til 2am days are long over now that I am in my early 40s
    • slowpoke rodriguez
    • By slowpoke rodriguez 29th Oct 16, 3:53 PM
    • 298 Posts
    • 238 Thanks
    slowpoke rodriguez
    Tried that option with the bank but no joy
    Originally posted by caronoel
    This sounds very strange. Wouldn't a mortgage company want to see what they're getting for their money as the project progresses?
    • Pincher
    • By Pincher 29th Oct 16, 4:13 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    I expect you got a rather good fixed rate, which has to start on the dot, because the lender arranged a money market deal starting then.

    Self builds tend to be paid in phases, as there is nothing for collateral to begin with. Practically speaking, a shell with no roof is not worth anything either, but the one lending the money call the shots.

    An extension is less stressful for the lender, as they can always throw you out and sell the main building. Very comforting, FOR THE LENDER.
    • chucknorris
    • By chucknorris 29th Oct 16, 4:23 PM
    • 9,317 Posts
    • 13,973 Thanks
    chucknorris
    The whole interior needs redoing to be honest. The property currently has six beds, but most of them are odd sizes and not really usable. So the whole thing needs to be reconfigured and much of the roof will need replacing too.

    We bought the place out in the wilds of Surrey a couple of years back with the aim of doing it up as our dream home.

    Now is the time....

    As against all that, I do miss the buzz of London, but my clubbing til 2am days are long over now that I am in my early 40s
    Originally posted by caronoel
    We moved out of London to Surrey when I was 48 (just over 10 years ago), I can honestly say there hasn't been one day that I regretted it.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • caronoel
    • By caronoel 29th Oct 16, 6:55 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    Back to the original question, any views on what to do with 500k for up to 12 months?
    • ColdIron
    • By ColdIron 29th Oct 16, 7:17 PM
    • 3,582 Posts
    • 4,292 Thanks
    ColdIron
    Have you dismissed posts #2 and #3?
    • caronoel
    • By caronoel 29th Oct 16, 8:45 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    Anything beyond NS&I?
    • bigadaj
    • By bigadaj 29th Oct 16, 9:16 PM
    • 10,736 Posts
    • 7,022 Thanks
    bigadaj
    Binary options?
    • slowpoke rodriguez
    • By slowpoke rodriguez 29th Oct 16, 9:17 PM
    • 298 Posts
    • 238 Thanks
    slowpoke rodriguez
    Anything beyond NS&I?
    Originally posted by caronoel
    You want safe? Then no.
    At 1% they're actually not a bad rate, in comparison to the alternatives...
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