Short-term investment

LondonColt

HI there, first time poster here so I hope I've put this in the right place! I am basically looking for some advice about where is best to put some spare cash I have for a short-term investment (6months-ish)

I have around £1000 lump sum, and then £300-£400 a month that I can put into savings, but am planning on purchasing a house in around 6 months time with my partner so I need to put it somewhere where I can access it then without any penalties. I already have a Help to Buy ISA that I am putting the maximum per month into, and my bank account with First Direct doesn't do great interest so I want to move it somewhere else.

My only debt is £900 on a balance transfer credit card which is interest free until February 2018, so I figured the cash was better going into savings than paying that off when it isn't costing me anything.

So my questions are:

1) Is savings over paying off credit card debt the right call? I assume that £900 of debt won't affect my mortgage application too much to make it worth a priority clearing.

2) Where would the best return be for my money? I'm aware the returns will be low given interest rates and relatively low values of cash, but my logic is it's better than nothing!

Hope that is enough information to go on for now, but let me know if more would be helpful. Thanks in advance!:beer:

xylophone

Open a Natiowide Flexdirect?

Jox

When I visited 3 banks to ask about mortgages they all asked about credit card debt and it did impact on the amount they would lend so would be good to reduce the credit card debt before you have appointments at the banks.

Try the mortgage calculators on santander / hsbc websites to see the difference with credit card debt and without the debt.