£160k and where to put it!

ellives

Hello - in need of advice please. As a result of being terminally ill I have received some insurance payouts, the last a couple of hours ago.

I do not want to commit to anything that may restrain me for obvious reasons - as it needs to be accessible to my wife once I die - and that could be 3-9 months prob at very best.

So my thoughts are quick access, security and return.....

Currently in Santander 123 which has a reasonable return on £20k

Really appreciate some guidance.

Evilles

xylophone

It would be possible to have a joint and two sole Santander accounts.

If DDs required, a couple of Tesco Savings Accounts for each of you would answer the purpose.

A joint NS&I account could be used - the return is not great but £100,000 could be held there securely pending a later decision.

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

justme111

I think it is an IFA territory as presumably your wife will not spend them all in a couple of years and you do not seem to be familiar with investments. Wishing your time whatever you have left to be good.

ellives

Thanks for your swift replies.

ellives

justme111 wrote: »

I think it is an IFA territory as presumably your wife will not spend them all in a couple of years and you do not seem to be familiar with investments. Wishing your time whatever you have left to be good.

She will need it to pay off the mortgage as I am the key financial resource.

ellives

xylophone wrote: »

It would be possible to have a joint and two sole Santander accounts.

If DDs required, a couple of Tesco Savings Accounts for each of you would answer the purpose.

A joint NS&I account could be used - the return is not great but £100,000 could be held there securely pending a later decision.

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

NS&I - is this premium bonds? If so your feedback suggests it is secure although potentially poor return?

Okay have now read he'd your response - I get it and I can see it is spot on, thanks

eskbanker

ellives wrote: »

She will need it to pay off the mortgage as I am the key financial resource.

Could some or all of the money be used for paying off the mortgage now?

ellives

Sadly not as there is a significant ER fee. On this point t it is a 5 yr fixed - March 2017 (crap timing) with NW - do they ever show ant mercy if the circumstances are like mine? And reduce the ER fee?

ellives

eskbanker wrote: »

Could some or all of the money be used for paying off the mortgage now?

PS we have a joint bank acc, she has full power of attorney and my current stance is to not alert them until I'm clearly poorly. It could be that this is 6 months plus away? At this point while she could continue to make full payments (perfect history btw) and reduce the mortgage and the ER fee over time, it seems a very unlikely arrangement as my wife alone would not secure the current mortgage amount single handed. Or might they look at her salary and a stash of cash? Again no as it'll trip the ER fee.

So my thinking is that she will clear the mortgage (using cash funds available) and face taking a £12k hit on top via the ER fee - unless they show a bit of mercy, which I'm not sssuming - anyone have any real world experience of this?

Thanks again - us brain tumour gang tend to not sleep regularly - this keeping me busy tonight lol��

Wookey

Does your mortgage not have an insurance built into it where on the event of one of you dying that the mortgage is paid of?

12k is a big chunk of money to be paying in fee's, i would be inclined to sit it out for the duration of the term and put the cash into the highest paying accounts i could find whilst making some mortgage overpayments if allowed.

greenglide

According to the Nationwide web site an ERC is not payable if:-

......
your mortgage is paid off following a critical illness claim in your name
your mortgage is paid off following your death or that of your partner/spouse
.....

See here http://www.nationwide.co.uk/support/support-articles/manage-your-account/mortgage-early-repayment/early-repayment-overview