What to do with £250,000

claire21

Hi all,
I have just sold a house i have inherited for £285k, i have never had any savings before so would like some advice.
Im going to pay off my morgage of £30K and that leaves £250K.
I see i should have £3k in a cash isa and from then on i have no idea.
I have no debts apart from my mortgage that i will clear.
I live with my partner and i have 3 young children who have around £6k each in Nat West childrens account.
I only have a Nat West current account and the money from the sale will go there next week.
I need around £40k to renovate the house I live in but no other short term plans.

Hoping you can advise some options.

EdInvestor

Hi claire

Congrats on your good fortune No need to rush on spending it, I'd have thought.


Do you work/have a salary?

Woud it be best to invest this money for longterm savings - or do you want/need an income now?

Might you want to use part of the money to buy a bigger home, or just renovate your existing one?

Assuming the latter, suggest you open a few high interest savings accounts ( say 4 times 50k ) and leave the money there for a while until you have a better idea about its long term use.

prudryden

Agree with Ed - take your time. Split the funds among quality banks.

claire21

Thanks for such a quick reply.

My partner and i are self employed, he is a plumber and also a photographer and im a partner in the plumbing business.

I wont be moving as just got this house in March and its a huge family home, just need some work done on it.

The house i inherited i rented out for a while but needed to sell it for capital gains tax reasons as it was the best time to avoid them. I own another rental property as well. In the future i may buy another rental but we have so much work to do here and the photography business is new so a lot of time and effort is going here. I cant see myself looking at property for a year or so if I do and maybe its better not to have all your eggs in one basket.

Should i just pick 4 accounts off the top of the list?

See i know where i am with property but not with cash!!!

Claire

ias76

If you get 3 or 4 high interest accounts it will give you some breathing space. It will give you a chance to think about your long term financial goals for you and your family.

Also remember if the interest rate on the accounts dip just switch your money into another one.