How manage sale proceeds whilst renting?

scdandem

We’ve decided to sell our lovely home asap because HS2 is coming through our village and the start of construction coincides with planned retirement when we intended to downsize and release capital. The closer we get to construction the more we are likely to lose in value. We are blighted but not eligible for compensation - Don’t get me started on the sheer unfairness of it all...

The question is, what’s the best thing to do with the money if we have to rent in the interim period. We don’t know where we want to go yet but just feel we need to act before it’s too late to sell.

Thanks in advance.

kinger101

Really, you need to ensure;

(a) you have your money in a no-notice or short notice account(s). When you do come to buy, a vendor isn't going to wait for your five year bond to mature.
(b) you have no more than £85,000 held at any one bank (that's the FSCS limit).

I'd stay well away from Ulster Bank. Even though their "instant access" account has a good rate, you have to jump through all sorts of hoops to get your money out, and they have NO branches on the mainland. Glad I found out about this well before exchanging contracts.

Investments are not really suitable, if you cannot risk a fall in the value of your money.

dancing_star

kinger101 wrote: »

(b) you have no more than £85,000 held at any one bank (that's the FSCS limit).

£75k now, limit went down a couple of years ago

G_M

kinger101 wrote: »

Really, you need to ensure;

(a) you have your money in a no-notice or short notice account(s). When you do come to buy, a vendor isn't going to wait for your five year bond to mature.
(b) you have no more than £85,000 held at any one bank (that's the FSCS limit).

I'd stay well away from Ulster Bank. Even though their "instant access" account has a good rate, you have to jump through all sorts of hoops to get your money out, and they have NO branches on the mainland. Glad I found out about this well before exchanging contracts.

Investments are not really suitable, if you cannot risk a fall in the value of your money.

The £85K limit does not apply to money held temporarily following a property sale.

https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/

Ulster Bank is not that bad. But Birmingham Midshires offer a slightly better rate.

As always, shop around at the time you get the money as rates change - esp since the Base rate has just changed.

Marvel1

Maybe better posted in Savings & Investments, you will get more answers from the regulars who visit that section.

G_M

dancing_star wrote: »

£75k now, limit went down a couple of years ago

and then went up again....

https://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

dancing_star

G_M wrote: »

and then went up again....

https://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

blimey, missed that. I stand corrected! Thanks

scdandem

Thank you so much for your answers ��

aliby21

NS & I - if you want something you can just put it all in and know it is safe.

Slithery

You can always put £50k in premium bonds as well.

Chances are your winnings will be more than the interest you'd get in a bank account and access to funds is quick when you need to cash out.

kinger101

G_M wrote: »

Ulster Bank is not that bad.

They are if you want your money quick. I only found out from the savings forum that you need to order a special card and reader to make withdrawals. And it might take two weeks for them to arrive.

I'd have hated to have found that out a couple of days before completion.

Think I'll move it to B'ham Midshires.

NB - didn't know about the proceeds from property sale rule, but OP should note this only applies for six months.