Money locked in Bond

BenA

Hi there,

Long time reader, first time poster. I recently put a big chunk of money into a 5.5 year bond with Santander (some of the proceeds of the sale of my house). I'd been intending to emigrate to the US to be with my wife. She decided instead to ask for a divorce, so I'm still here in the UK.

I'm now apparently unable to get the money back out (I wrote a letter detailing my situation) to help towards buying a new property. Any thoughts on whether I stand a chance of getting to it again before 5.4 years have gone by?

With thanks,

Ben

qpop

I'd recommend reading through the Key Facts document you will have received when taking out the product. There will be a section on withdrawals.

"Bond" is a generic term - it could mean a variety of things. Is this a cash investment (i.e. a 5 year fixed rate bank account) or an insurance bond (which is a tax wrapper for "real-asset" investments such as shares, property, gilts/corporate bonds)?

If you can provide a link to the product page people will be able to help more easily.

opinions4u

What's the name ogf the "bond" you've stuck your money in?

What do the terms and conditions actually say about partial withdrawals or early closure?

dunstonh

'm now apparently unable to get the money back out (I wrote a letter detailing my situation) to help towards buying a new property. Any thoughts on whether I stand a chance of getting to it again before 5.4 years have gone by?

Fixed term deposits (I assume that is what you mean by bond but it could be a number of other products with bond in the name, so assumption could be wrong) come in two versions. Those that you cannot access your money, even with penalty and those that you can access with penalty. Which is yours?

BenA

qpop wrote: »

I'd recommend reading through the Key Facts document you will have received when taking out the product. There will be a section on withdrawals.

"Bond" is a generic term - it could mean a variety of things. Is this a cash investment (i.e. a 5 year fixed rate bank account) or an insurance bond (which is a tax wrapper for "real-asset" investments such as shares, property, gilts/corporate bonds)?

If you can provide a link to the product page people will be able to help more easily.

I'm afraid the bond stopped being offered just after I got it so it's not on the bank's (Santander's) web site any more. It is an inflation linked savings bond.

BenA

opinions4u wrote: »

What's the name of the "bond" you've stuck your money in?

What do the terms and conditions actually say about partial withdrawals or early closure?

Mostly the Terms & Conditions say "full closure not permitted until maturity". It's an inflation linked savings bond. I was just hoping to appeal to their sympathy.

dunstonh

I'm afraid the bond stopped being offered just after I got it so it's not on the bank's (Santander's) web site any more.

Do you mean this one on their website?
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237899884484&empr=Abbeycom&launch=NO&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

It may not be the same tranche but it is likely the same product. If so, it states in the key points:

Withdrawals or account closure will not be permitted during the fixed term period. The account may be closed in the event of an account holder's death.

was just hoping to appeal to their sympathy.

All you can do is ask. However, it will cost Santander if they allow it and that means they would have to pass those costs on to others. So, on the basis of fairness, it isnt likely. If you dont ask you dont get though.

BenA

dunstonh wrote: »

Fixed term deposits (I assume that is what you mean by bond but it could be a number of other products with bond in the name, so assumption could be wrong) come in two versions. Those that you cannot access your money, even with penalty and those that you can access with penalty. Which is yours?

It appears to be one I cannot access even with a penalty. According to the details I've just had faxed to me it's an index/inflation linked savings bond and I cannot make any withdrawals within the period of the fixed term.

I just hoped they'd take pity on me given my situation.

BenA

dunstonh wrote: »

Do you mean this one on their website?
[link removed]
It may not be the same tranche but it is likely the same product. If so, it states in the key points:

Withdrawals or account closure will not be permitted during the fixed term period. The account may be closed in the event of an account holder's death.

All you can do is ask. However, it will cost Santander if they allow it and that means they would have to pass those costs on to others. So, on the basis of fairness, it isnt likely. If you dont ask you dont get though.

That's similar, but not the same. As I said, mine's not being offered any more so it's gone from the site and they've destroyed all promotional paperwork for it in-branch. I asked/sent a letter to the right department, with explanation. They said no. I was just hoping this esteemed organ (MSE fora) would have an idea I hadn't had yet.

Thanks for your help everyone. Looks like I'm renting for the next five and a bit years.

Ben

atush

Make sure this opportunity cost that you are suffering due to her decision ( I am assumingh she knew you were investing the money so you could move over to her) is detailed incl the extra costs you will face for borrowing or your lack of ability to buy and any consequent loss for not buying now are recorded to use during your settlement between you of any assets. Perhaps this bond can be 'her's' and you can receive an equal amt of accessible assets to use for purchace?

Basically, if you can transfer ownership of the product to her, or sign to deliver the proceeds at maturity then use other marital assets to buy now?

Consult your divorce solicitor on this.

BenA

atush wrote: »

Make sure this opportunity cost that you are suffering due to her decision ( I am assuming she knew you were investing the money so you could move over to her) is detailed incl the extra costs you will face for borrowing or your lack of ability to buy and any consequent loss for not buying now are recorded to use during your settlement between you of any assets. Perhaps this bond can be 'her's' and you can receive an equal amt of accessible assets to use for purchase?

Basically, if you can transfer ownership of the product to her, or sign to deliver the proceeds at maturity then use other marital assets to buy now?

Consult your divorce solicitor on this.

Honestly, I don't know as I want that hassle. I don't have a divorce solicitor and, at the end of the day, I don't want to get into a money/assets battle with my soon-to-be ex-wife. It is, at the end of the day, only money. Admittedly, renting for six years (in this area of the country) could cost around £60K that would have been better spent on a mortgage but I don't know what's going to happen to me in the next six months, let alone six years. Maybe I'll end up getting a house with someone else and won't need all of the savings anyway to make the purchase.

Santander may offer me a mortgage and take into account the fact that I have this money in a bond which I can use as a lump sum down the line to pay off a chunk. That's something else I'm looking into...