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Investing house sale funds when no purchase

Tony_Korn
Tony_Korn Posts: 3 Newbie
in House buying, renting & selling
Where should we invest funds from having sold our house (~£850,000) when we have no imminent purchase (we'll be renting)?

Comments

  • greatgimpo
    greatgimpo Posts: 1,256 Forumite
    How much researching have you done?
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Why are you not buying straight away?
    I'd take advice. There's a cash limit from the FSA per bank that you need to look into.
  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Tony_Korn wrote: »
    Where should we invest funds from having sold our house (~£850,000) when we have no imminent purchase (we'll be renting)?

    depends really doesn't it.

    when do you intend to buy another house and how much for. are you prepared to risk any of the sales proceeds.
  • googler
    googler Posts: 16,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 10 August 2011 at 12:22PM
    You'd probably be better off posting in the savings and investments board..... but as was said, how much of it do you want to risk on investments that may go down instead of up? Or do you want it all in guaranteed investments?
  • Tony_Korn
    Tony_Korn Posts: 3 Newbie
    greatgimpo wrote: »
    How much researching have you done?

    I've spoken with several building societies and banks. There's the FSA max or take a risk. Plus there's the risk of foreign banks (e.g. Santander). Instant access is always recommended but max interest rate is 2.75 from Santander. (2.2 from Halifax and 1.3 from Barclays.) Can't I get a higher interest rate for £850K?
  • Tony_Korn
    Tony_Korn Posts: 3 Newbie
    chewmylegoff wrote: »
    depends really doesn't it.

    when do you intend to buy another house and how much for. are you prepared to risk any of the sales proceeds.

    Not for at least 6 months. Downsizing but - with refurbishment - want to spend ~ all £850K in new house. Therefore not willing to risk any of sale proceeds.

    I've spoken with several building societies and banks. There's the FSA max or take a risk. Plus there's the risk of foreign banks (e.g. Santander). Instant access is always recommended but max interest rate is 2.75 from Santander. (2.2 from Halifax and 1.3 from Barclays.) Can't I get a higher interest rate for £850K?
  • Wobblydeb
    Wobblydeb Posts: 1,046 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    If you don't want the hassle of splitting it up for safety reasons (something I'd be thinking about considering the state of banking at present) consider keeping it with NS&I. You will earn a lower rate than some of the others available on the market, but your money will be 100% backed by HM Treasury.
    I've got a plan so cunning you could put a tail on it and call it a weasel.
  • betmunch
    betmunch Posts: 3,126 Forumite
    Have you tried asking the sellers what they would consider "Proof"?

    They might be happy with a letter from your conveyancer stating that subject to the sale of your house you have the finances in place to purchase at £xxx,xxx.

    Obviously the x's are replaced with the amount that has been agreed.
    I am a Mortgage Adviser
    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.
  • martindow
    martindow Posts: 10,578 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    betmunch wrote: »
    Have you tried asking the sellers what they would consider "Proof"?

    They might be happy with a letter from your conveyancer stating that subject to the sale of your house you have the finances in place to purchase at £xxx,xxx.

    Obviously the x's are replaced with the amount that has been agreed.
    I think this reply was intended for another thread! There is one about a private sale where the seller is asking for proof of funds.
This discussion has been closed.
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