Where to invest £50k while renovating house

Bigspender123

We have borrowed an extra £50k on our mortgage so we can make some renovations to our new house we have just bought. We expect there will be around 9 months where we are planning what changes to make and going through planning approval etc, and then start to draw down on this £50k.
How do we best invest this money during this time to maximise the return, whilst still being able to have access to it when required?

Rafter

Suggest you start with the 'Banking and Saving' menu at the top for best ISA and savings rates.

You really don't want to be 'investing' borrowed money over that time period given that you may not be able to access it and may lose money.

Does your lender offer 'offset' savings? That might offer a better return (tax free) than anything you can get elswhere. Likewise - would they allow you to repay or not draw down the £50k until you need it to save paying interest on this money when you don't yet need it?

Good luck

R.

xylophone

A few interest paying current accounts from various providers should fit the bill?

Or even ( for simplicity) a Santander 123 each and a joint?

jimjames

The money for our extension that has been drawn down has been in the best paying current accounts as well as some remaining in the mortgage until needed.


If the money isn't required yet, is there the option to leave it in the mortgage until you need to draw it?

Bigspender123

Thanks all for your advice. We have already applied for the Santander 123 account and we will look into option of not drawing down full amount.