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    • Leither
    • By Leither 12th Jul 17, 9:30 AM
    • 1Posts
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    Leither
    Where to put cash from house sale?
    • #1
    • 12th Jul 17, 9:30 AM
    Where to put cash from house sale? 12th Jul 17 at 9:30 AM
    Just about to sell our flat and we haven't found anywhere to buy yet. While we're waiting to find something, I'd like the money from the sale of our flat to be put to good use. However, our mortgage advisor advised us against applying for any new bank accounts that would require credit checks, in case this affected our credit rating. Are there any savings accounts out there for larger amounts that don't run credit checks?
Page 1
    • supermassive
    • By supermassive 12th Jul 17, 9:32 AM
    • 438 Posts
    • 566 Thanks
    supermassive
    • #2
    • 12th Jul 17, 9:32 AM
    • #2
    • 12th Jul 17, 9:32 AM
    Does opening a new account really have an adverse effect on your credit rating if you pass? You're not applying for credit so I very much doubt it'd have any lasting effect... in fact, if you're going to be searching for a property for longer than 2 months, it won't have an adverse effect at all!
    I can't add up.
    • ReadingTim
    • By ReadingTim 12th Jul 17, 10:42 AM
    • 2,154 Posts
    • 3,053 Thanks
    ReadingTim
    • #3
    • 12th Jul 17, 10:42 AM
    • #3
    • 12th Jul 17, 10:42 AM
    Surely you've got a savings account already open for all the saving you've been doing to buy the new place? If so, stick it in that!
    • Lucky Duck
    • By Lucky Duck 12th Jul 17, 10:56 AM
    • 114 Posts
    • 64 Thanks
    Lucky Duck
    • #4
    • 12th Jul 17, 10:56 AM
    • #4
    • 12th Jul 17, 10:56 AM
    There was a two or three week gap between my house sale and the purchase of my new home (delayed new build) so I put the proceeds in my savings account.

    This netted me around £15 of interest which was wiped out by the fee for transferring to the solicitor dealing with the purchase. I should have just arranged for it to be transferred directly between the solicitor dealing with the sale and the other dealing with the purchase.
    • sevenhills
    • By sevenhills 12th Jul 17, 11:01 AM
    • 715 Posts
    • 256 Thanks
    sevenhills
    • #5
    • 12th Jul 17, 11:01 AM
    • #5
    • 12th Jul 17, 11:01 AM
    Surely you've got a savings account already open for all the saving you've been doing to buy the new place? If so, stick it in that!
    Originally posted by ReadingTim
    My supposedly internet high interest account pays 0.1%; I was in a similar position, with £25,000
    I settled for 0.9% with a savings account(Coventry ISA) that I will keep. I am only expecting to move the money for a few weeks, a few months could give you more options.
    Last edited by sevenhills; 12-07-2017 at 11:05 AM.
    • DumbMuscle
    • By DumbMuscle 12th Jul 17, 11:05 AM
    • 196 Posts
    • 290 Thanks
    DumbMuscle
    • #6
    • 12th Jul 17, 11:05 AM
    • #6
    • 12th Jul 17, 11:05 AM
    How much cash? If it's more than £85k, and will be held for a bit of time, then you may want to split it, (or put the whole lot into an NS&I account, since those are backed by the treasury), to ensure it's FCA protected in the (unlikely) event that the bank goes bust.

    A single savings account is unlikely to have a significant effect on your credit rating - only if you went the route of putting it in current accounts and got overdraft facilities on those accounts! Credit ratings look at your access to credit and your reliability when paying off credit. Savings accounts are the opposite of credit!
    • kingstreet
    • By kingstreet 12th Jul 17, 11:10 AM
    • 32,254 Posts
    • 17,281 Thanks
    kingstreet
    • #7
    • 12th Jul 17, 11:10 AM
    • #7
    • 12th Jul 17, 11:10 AM
    Does opening a new account really have an adverse effect on your credit rating if you pass? You're not applying for credit so I very much doubt it'd have any lasting effect... in fact, if you're going to be searching for a property for longer than 2 months, it won't have an adverse effect at all!
    Originally posted by supermassive
    Applying for a current account requires a credit search, just like the mortgage.

    Too many searches in a short period (six months?) will affect a mortgage lender's credit score, so the advice is pertinent regardless of credit being requested or the application for the account being accepted.

    In a worst case scenario, it might push a weak mortgage application from accept to decline, or from 10% min deposit to 15% and so on...

    Typically, a savings account will involve only an ID search which leaves no footprint visible to a mortgage lender.
    Last edited by kingstreet; 12-07-2017 at 12:07 PM. Reason: Typo in weak
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • AdrianC
    • By AdrianC 12th Jul 17, 11:12 AM
    • 15,469 Posts
    • 13,788 Thanks
    AdrianC
    • #8
    • 12th Jul 17, 11:12 AM
    • #8
    • 12th Jul 17, 11:12 AM
    Balance the potential hassle against the actual return from an account.

    A 1% interest account returns £83 for each £100k, per month.
    • G_M
    • By G_M 12th Jul 17, 11:36 AM
    • 41,950 Posts
    • 48,551 Thanks
    G_M
    • #9
    • 12th Jul 17, 11:36 AM
    • #9
    • 12th Jul 17, 11:36 AM
    A current account provides access to credit - an overdraft. A savings account does not. Hence the financial adviser's advice.

    Post your query on the savings & investments board.
    • Lucky Duck
    • By Lucky Duck 12th Jul 17, 12:00 PM
    • 114 Posts
    • 64 Thanks
    Lucky Duck
    How much cash? If it's more than £85k, and will be held for a bit of time, then you may want to split it, (or put the whole lot into an NS&I account, since those are backed by the treasury), to ensure it's FCA protected in the (unlikely) event that the bank goes bust.
    Originally posted by DumbMuscle
    When I looked at this, the value increases if the money arises from the sale of property but this additional protection only lasts six months
    • lincroft1710
    • By lincroft1710 12th Jul 17, 4:14 PM
    • 9,924 Posts
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    lincroft1710
    I'll PM you my bank A/C details, the money will be safe there
    • glasgowdan
    • By glasgowdan 12th Jul 17, 5:04 PM
    • 2,584 Posts
    • 2,904 Thanks
    glasgowdan
    We had 4 months to store 250k and got a savings account that was something in the region of 1.5%. I think it earned £250 a month net which was decent. Charter savings bank.
    • davidmcn
    • By davidmcn 12th Jul 17, 5:17 PM
    • 6,111 Posts
    • 5,857 Thanks
    davidmcn
    When I looked at this, the value increases if the money arises from the sale of property but this additional protection only lasts six months
    Originally posted by Lucky Duck
    If really paranoid, split your money anyway - FCA protection just means you'll get the money back eventually, not that you'll have easy access to it.
    • sheff6107
    • By sheff6107 12th Jul 17, 5:44 PM
    • 442 Posts
    • 293 Thanks
    sheff6107
    Stick it an ISA. You'll only get 1% but it's better than nothing.

    Unless you go for stocks and shares nobody pays any interest nowadays
    • G_M
    • By G_M 12th Jul 17, 10:20 PM
    • 41,950 Posts
    • 48,551 Thanks
    G_M
    Stick it an ISA. You'll only get 1% but it's better than nothing.

    Unless you go for stocks and shares nobody pays any interest nowadays
    Originally posted by sheff6107
    I'm guessing the proceeds of a property sale might exceed the annual ISA allowance........
    • Corona
    • By Corona 13th Jul 17, 4:59 PM
    • 827 Posts
    • 761 Thanks
    Corona
    If really paranoid, split your money anyway - FCA protection just means you'll get the money back eventually, not that you'll have easy access to it.
    Originally posted by davidmcn
    That's what I'd do. Also check that if you put it in different banks they don't belong to the same Institution. See Martin's guide "Are Your Savings Safe?"
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