Money stressing me out!

UniqueName_2

Hi all,

*** UPDATE IN POST 7 BELOW***

I was hoping someone here could give me some quite specific advice. I've ended up in an enviable and unenviable position, and have a lot of cash lying around and could do with being told where to store it.

Basically I was in the process of buying a BTL, and was diagnosed with cancer. As the property had lots of problems (that I was previously happy to accept) I had to pull out of the purchase as I knew I wouldn't be able to cope with the treatment and stresses of renovating a new property with a problematic freeholder at the same time. As I had already prepared the cash, I find myself with £50k or so lying about now.

Then, for reasons I can't even remember, I bought a critical illness policy last year, which has just paid out (to my shock!).

Sounds good I know! But it is stressing me out, and I find myself worrying about it at night, but can't find the time and energy in the day to make a decision as to where I should put it. I have it all sitting in a bank account in one bank, and I know I should move it around, and would happily invest in a UK Equity and Bonds fund if I knew which one to choose. I have spoken to an IFA, but he has said as we are only looking at a 2-3 year horizon, then I don't need and IFA and should just keep it in the bank. But I'm uncomfortable watching it lose value against inflation, and earning 0.01%!

So, can anyone give me some really specific opinions (I won't call it 'advice')! I won't hold it against you if it doesn't work out, but I just need someone to help me actually make the decision so I can stop worrying about it. Maybe just writing it down here may help me too.

Thanks in advance.

6022tivo

Enjoy your money.

UniqueName_2

I should probably add - I'm not going to die of this cancer if I have anything to do with it! So I am still planning for the future.

The 2-3 year horizon is related to moving countries in a few years, not planning on checking out. If it gets to that, the money will be spent don't worry!

fiesta04

The IFA was correct in their advice.

Depending on what %rate you can get on a remortgage, it may be wise to pay some off to get a better rate. All that's left to do is find saving accounts to get the highest interest possible.

Make sure you are under £85K in the Banks and B/Soc. Not good rates at moment!!

If you still can not make a decision, I will always relieve you of it so you can sleep at night..........

F4

Jegersmart

6022tivo wrote: »

Enjoy your money.

what does this mean?

J

Jegersmart

UniqueName

I am sorry to hear about your situation, I know that these things can be very worrisome indeed and I hope all goes well!

To be honest, I would pay off as much of the mortgages as you can even if there is a penalty. This reduces your leverage/risk should something unexepected happen. The BTL may be OK now, but when rates go up that will of course follow immediately.

All the best!

J

UniqueName_2

Hi all,

Sorry to dredge up an old thread - but I have found an option which seems too easy to be true.

My mortgage fixed period has finished, and while looking for a new mortgage I found that my current lender (Woolwich) offers a loyalty offset mortgage at 2.99% variable for 2 years. They will offset everything in all my accounts, including the savings and current account, when they calculate the interest each month.

Since I'm a high rate taxpayer, that is much higher than I would get anywhere in interest rate for the savings. Even my ISA would be offset, although clearly I would lose out on the interest.

Seems a no-brainer for me.

Plus it means I still have the money available if I need it. The only downside is that there is a 1% ERC, but that would roughly be what I would save in interest costs after less than a year. The other option is to go onto a fee free, ERC free SVR of 3.99%. Or a lower fixed rate of 2.19% but no offset.

What do people think?