first post please can anyone help?

jacqui12_2

Hi

I have £500 to spare and intend to save £120 a month for 14 years to help my daughter pay off her interest only mortgage off at this time. I know it is not a lot but would appreciate any advice offered on how to get make the most of this money. I was wondering would a cash ISA be appropriate and if so given today's rates how much could I expect in 14 years please?

Many thanks in advance for advice/help offered

masonic

Wouldn't it be more efficient to give her the money and have her switch to repayment?

xylophone

If you wish to stay in cash, just at the moment interest paying current accounts might be your best bet - how about a TSB Plus until you reach £2000?

Is your daughter able to make capital repayments on this mortgage?

You could give her each £2000 as you reach it and she could pay off some capital?

Over so long period you might consider regular monthly contributions to an investment trust plan within an ISA but the capital would not be guaranteed.

YorkshireBoy

If I could spin the question around, how much do you/does she want/need at the end of the term?

jacqui12_2

I was hoping I might get near 20.000 after 14 years perhaps this is naive

thank you for all help

YorkshireBoy

jacqui12 wrote: »

I was hoping I might get near 20.000 after 14 years perhaps this is naive

thank you for all help

A net 1.5% AER will get you around £22.5K

mvarrier

500 + 12x120x14 is 20,610. Add some interest and you should exceed it.

Agree with the sentiments above though- unless she has a very low interest rate making repayments make sense- especially if you can get in to a lower LTV bracket and re-mortgage to an even better deal.

jacqui12_2

YorkshireBoy wrote: »

A net 1.5% AER will get you around £22.5K

Where would I earn a net 1.5 please ?

Many thanks

eskbanker

jacqui12 wrote: »

Where would I earn a net 1.5 please ?

Many thanks

Have a read through http://www.moneysavingexpert.com/savings/which-saving-account and the linked pages from it, a combination of regular savers and current accounts is likely to give you the best return....

Eco_Miser

A TSB Plus will get you 5% AER as you build up to £2000 over the next year, then open the TSB Plus regular saver, also 5%AER, and pay in the full £250 each month, reducing the balance in the current account. After a further year, look around to find what's best then.