Help needed.......Investments short term

jules335500

I'm removing approximately £9,000 from an investment fund (no penalities)that has consistently been losing money over the last 3 years as I would like to use this money towards paying off my mortgage in three years time.

I am looking for guarenteed return on my investment and Barclays wealth has been recommended to me as being a short term investment which will guarentee my money will not depriciate and depending upon the ftse 100 at the end of the term will bring a good return on my money in 2-3 years.

Please advise of best options around ....Thanks

dunstonh

Sounds like a short term GEB. I doubt Barclays have access to any good ones although there are some 1 year and 3 year versions on the whole of market which could potentially be suitable.

However, I would be more concerned about your understanding at this stage. Why has your investments gone down each of the last 3 years? It wont be stockmarket based, it wont be property and fixed interest had a bad couple of years until this one but still didnt lose money. So, what are your current investments?

Whilst GEBs have a capital security, you are paying for this in charges. The charges are not explicit so you dont see them. They are implicit so you need to understand how they work to spot them. The most obvious one is that you dont get dividends on a GEB. So there is 3% or so gone each year. Some of the GEBs dont give you 100% of the FTSE growth. They cap it.

In reality they are not investing in the same index but using other instruments to provide the return to them which will then be used to fund the return or guarantees that the terms offer.

The bank's private banking arms rarely provide good value for money and often the advice they give is very basic on packaged products.

opinions4u

Many fixed rate mortgages allow you to pay up to 10% off the capital penalty free.

Considered this?