20K where to invest - self employed

sobie

Hi,

I've recently been given £20K gift and want to know how best to use.

We have 8 yrs remaining on an fixed rate interest only (endowment) mortgage. Unfortunately our endowment has a massive 50% shortfall, so we've been paying off the maximum 10% on the interest every year.

If I pay off the £20K on our mortgage, we will be faced with £2,400 in fines (as its fixed rate). So I'd rather wait until our fixed rate is up in 2yrs time than pay the fee.

So between now and then, where should I put the 20K? I am self employed so cannot pay a fixed salary into a current account, also my partner pays all of our household bills so I do not have any direct debits to pay. so something like the 123 account is unsuitable.

Thanks

droopsnoot

Two years is a bit too short for an investment product - five years is usually the absolute minimum that most would advise.


I am in a similar position and need to read up on the 123 account. It is possible to open an account at another BS (I think Tesco), which can be used to take care of the Direct Debit requirement, then cycle some money back from that account into 123 to meet the income requirements. It needs careful reading, I've been putting it off but there are many descriptions on here on how to arrange the transfers to meet the rules and get the interest.

macman

As above, you take over the 2 DD's and your partner pays you by SO the same day the DD goes out.
Do the same with the feeder £500pm, simply send it to 123 on one day and back to your current account the next.
Or you can pay a small monthly DD to 2 charities of your choice.

Imma_Number

Santander 123 current account also has a £2 pcm fee but cash-back on certain DDs so I moved my Council Tax, gas, & electric DDs to Santander so the cash-back covers the monthly fee.

I transfer in the £500+bills amount and transfer £500 back out on the same day.