Your views on this "financial advice"

jules9

Hi,
Regretfuly I am going through a divorce. I am likely to have around £200k at the end.
My intention was to go out and buy a flat/small house for about £150k and then get a small mortgage for about £50k. I am looking for a short term 5 year mortgage as this is when i plan to stop working.
I had all this thought out and then went to see a financial advisor......
He told me that I should get a large mortgage for around £150k and place that money with a financial plan that he would suggest. He said this could earn around 12% interest and would be far more sensible than doing it the way I thought of.
Does this make sense, I'm a bit suspicious that he is after 2 lots of commision, one on the mortgage and the other on the savings investment.

Your views much appreciated. Is it better to go for a mortage as i had planned or to do what he is suggesting?

toonfish

dangerous advice - no investment can guarantee you anywhere near 12% - your thoughts are right, he's trying to rip you off IMO.

17Dave

So we have a mortgage at say 6% and an investment at 12% - sounds too good to be true and probably is.

The answer to whether this is good advice depends on your acceptance of risk. The 12% interest sounds good but is it guaranteed? Or is it a stock market type investment?

The most telling comment you make is regarding the 2 lots of commission - spot on.

I would suggest that you check the investment carefully - look at past returns over at least 2 or 3 years. Also use the Internet rather than just relying on brochures.

If it is as good as it sounds tell everyone!!

MortgagesInc

If you're looking at retiring in 5 years I'm not quite sure why you even want to get a mortgage - could you not just buy the flat outright and then use your income to build up your savings/pension

dunstonh

This is a duplicate thread. Answers appear on your other thread already

Please do not duplicate http://forums.moneysavingexpert.com/showthread.html?t=568698

If board admin spots this, can these please combine the threads.

jules9

Hi Dunstonh,

Thanks for your help. I did not intend to duplicate the post. I thought due to the lack of replies on my other posting that I had put it in the wrong section.
I appreciate your help