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What to do with £25k

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Hi everyone

I currently have £25k and we're looking at saving (both me and partner) for a mortgage. We have both just opened a Halifax mortgage ISA with the max of £1k in each; but also now have £25k.

What would be the best way of using this £25k? We want to save the max £200/month in the mortgage ISA, but are likely to need regular access to this capital to do this (as a lot of our disposable income goes on childcare). Would it be best to split the pot; half into a long term saver and half into a santander 123 account? All in the 123 account? Looking forward to your responses, as I do not have a way with numbers.

Comments

  • Aarond wrote: »
    Hi everyone

    What would be the best way of using this £25k? We want to save the max £200/month in the mortgage ISA, but are likely to need regular access to this capital to do this (as a lot of our disposable income goes on childcare).

    Yes save the maximum you can in the HTB ISA. I think you can put £1200 in the first month in each.

    - I'd personally think about separating your "capital". Set aside what you estimate you will need for childcare and "play" with the rest.

    - you then need to make a decision weather you want to maximise interest earned (have multiple accounts) or easy (lazy) life with one account and limited interest earning.

    - read the account terms regarding requirements and access, most of the current accounts are easy access, regular savers may have penalties.


    - save as much as possible, fill as many accounts as you want/can/need. Good luck.

    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts
    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts
    Earn, Save and Achieve
  • Great, thanks very much for the advice savings my hobby. I might give the multiple accounts a bash, just got to make sure I write it all down to make sure I know what's going on!
  • bobobski
    bobobski Posts: 771 Forumite
    Seventh Anniversary 500 Posts Name Dropper Chutzpah Haggler
    Aarond wrote: »
    Great, thanks very much for the advice savings my hobby. I might give the multiple accounts a bash, just got to make sure I write it all down to make sure I know what's going on!

    You'll get used to the juggling really quickly. If it helps, do a flow diagram of your min monthly pay-ins. And of course, set up SOs for these to reduce the room for error.

    Good luck!
  • with the multiple accounts you can transfer money between them to satisfy the requirements. you can set up standing orders so this is done automatically.

    i.e accountA to accountB to accountC to accountA
    Earn, Save and Achieve
  • Does having ridiculous numbers of current accounts have any impact on credit rating? I have 2 but I've had them for years.
  • darkidoe
    darkidoe Posts: 1,129 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Does having ridiculous numbers of current accounts have any impact on credit rating? I have 2 but I've had them for years.

    Not massively if you keep them for ages. The longer you hold your accounts, the better it looks your credit file. In the short term, it might increase the number of searches on your credit file, which might appear as a negative to lenders.

    Save 12K in 2020 # 38 £0/£20,000
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