What to do with £120,000??

Damo77

Hi guys, just looking for a little advise.

Myself & my partner have £120,000 which we are trying to decide what to do with. As well as this we have a further £15,000 in a savings account that the introductory interest rate is soon to finish.

The mortgage on our house only has £125,000 left but is currently on an interest rate 0.25% above BoE base rate so I have no interest in paying this off yet.

I have been advised that my best option is to load up some ISA's and then find a high interest savings account?

My partner doesnt work so she will be entitled to claim tax free on a savings account providing interest earned doesnt go over £6475.

Some others have mentioned the possibility of investments? But I dont know a great deal about these or where to look to find them??

Are investments worth looking into?

Any other help or advise would be greatly appreciated.

Thanks.

musehead

If you don't think you'll need the money for 5+ years (preferably more like 10 years) then it's worth looking into investments. But I think you'll be wanting to pay off your mortgage with the money when it gets to a higher rate in a few years.

For the time being I would fill up both your cash ISAs at the top rate (good accounts can be found in the MSE savings guide above). Then put the remainder of the cash in a couple of good savings accounts in your partners name so you can be paid the interest tax-free. There won't be any worries about the interest earned going over £6000 in the near future You'll want 2 (or maybe 3 to be completely safe) accounts if you want to stay largely within the government £50k compensation limit in case the bank goes bust.

I wouldn't fix for more than 1 year at the low rates avaliable today personally, unless there is a good getout clause. If you go instant access you'll need to keep an eye on the account and be prepared to move the money if the rate changes - all depends how organised you are.

jb66

How about buying another house to rent out?

Damo77

Thanks for advise Musehead.

jb66 wrote: »

How about buying another house to rent out?

This was one of my first thoughts but when posted previously the idea didnt receive much support. But it is something I would definately think about but I'd need to be a bit more confident that the property prices are not going to drop much further.

My original plan was to load up some ISA's, put the rest into savings accounts until I was confident property prices were not going to drop much more. Then pay off some of my mortgage and use rest as a deposit on another property to rent out.

Does this sound like a sane plan?

Browntrout_2

The California has a top speed of 193 mph and it can accelerate from zero to 62 mph under 4 seconds. Although 628 lb heavier and 30 hp less powerful than the mid-engined Ferrari F430, the California reaches 60 mph in the same time as the F430 thanks to the dual-clutch transmission.

matimage

:rotfl::T

v. good

Damo77

I'm tempted........how much??

neil324

Why don't you buy 4 houses?