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Where to put cash from house sale?
Leither
Posts: 1 Newbie
Just about to sell our flat and we haven't found anywhere to buy yet. While we're waiting to find something, I'd like the money from the sale of our flat to be put to good use. However, our mortgage advisor advised us against applying for any new bank accounts that would require credit checks, in case this affected our credit rating. Are there any savings accounts out there for larger amounts that don't run credit checks?
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Comments
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Does opening a new account really have an adverse effect on your credit rating if you pass? You're not applying for credit so I very much doubt it'd have any lasting effect... in fact, if you're going to be searching for a property for longer than 2 months, it won't have an adverse effect at all!I can't add up.0
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Surely you've got a savings account already open for all the saving you've been doing to buy the new place? If so, stick it in that!0
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There was a two or three week gap between my house sale and the purchase of my new home (delayed new build) so I put the proceeds in my savings account.
This netted me around £15 of interest which was wiped out by the fee for transferring to the solicitor dealing with the purchase. I should have just arranged for it to be transferred directly between the solicitor dealing with the sale and the other dealing with the purchase.0 -
ReadingTim wrote: »Surely you've got a savings account already open for all the saving you've been doing to buy the new place? If so, stick it in that!
My supposedly internet high interest account pays 0.1%; I was in a similar position, with £25,000
I settled for 0.9% with a savings account(Coventry ISA) that I will keep. I am only expecting to move the money for a few weeks, a few months could give you more options.0 -
How much cash? If it's more than £85k, and will be held for a bit of time, then you may want to split it, (or put the whole lot into an NS&I account, since those are backed by the treasury), to ensure it's FCA protected in the (unlikely) event that the bank goes bust.
A single savings account is unlikely to have a significant effect on your credit rating - only if you went the route of putting it in current accounts and got overdraft facilities on those accounts! Credit ratings look at your access to credit and your reliability when paying off credit. Savings accounts are the opposite of credit!0 -
Applying for a current account requires a credit search, just like the mortgage.supermassive wrote: »Does opening a new account really have an adverse effect on your credit rating if you pass? You're not applying for credit so I very much doubt it'd have any lasting effect... in fact, if you're going to be searching for a property for longer than 2 months, it won't have an adverse effect at all!
Too many searches in a short period (six months?) will affect a mortgage lender's credit score, so the advice is pertinent regardless of credit being requested or the application for the account being accepted.
In a worst case scenario, it might push a weak mortgage application from accept to decline, or from 10% min deposit to 15% and so on...
Typically, a savings account will involve only an ID search which leaves no footprint visible to a mortgage lender.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Balance the potential hassle against the actual return from an account.
A 1% interest account returns £83 for each £100k, per month.0 -
A current account provides access to credit - an overdraft. A savings account does not. Hence the financial adviser's advice.
Post your query on the savings & investments board.0 -
DumbMuscle wrote: »How much cash? If it's more than £85k, and will be held for a bit of time, then you may want to split it, (or put the whole lot into an NS&I account, since those are backed by the treasury), to ensure it's FCA protected in the (unlikely) event that the bank goes bust.
When I looked at this, the value increases if the money arises from the sale of property but this additional protection only lasts six months0 -
I'll PM you my bank A/C details, the money will be safe thereIf you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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