Investing £50000

Zoe.nash

Thank you, yes I think that’s what I will do for now and then get a IFA to help me, I never thought it would be so daunting and confusing to have a bit of money

sannytwist

Sounds like a total scam, also l wouldn't put any of my personal info on pop ups on your computer despite what it is advertising. Best to go with the saying if its too good to be true, usually is. Also l would install some anti virus software or malware protection if you have been diverted to some weird websites.
Take the advice of the previous posts, take your time and learn a little before investing your hard earned money.

fiisch

Sounds very similar to the London Capital and Finance bonds that recently imploded leaving thousands robbed of their life savings - very lucky escape.

You mention this money is from the sale of a house - are you likely to need this money to fund another house purchase in the relatively short term (i.e.: less than 5 years)? If so, then investing is not really the best bet.

Depending on whether you're higher/lower rate tax payers, when you think you're likely to need the money and what your risk tolerance is (i.e.: if your £50k became £30k, how would you react? What other savings do you have), will determine where to put the money.

If you're unsure, it may be worth putting into NS&I Premium Bonds in the short-term - government backed, interest is paid as "prizes" so no issue of paying tax on the interest, your money is protected and a minuscule chance of a big win..! Then, once the dust has settled, you can decide whether you do indeed wish to invest, or whether it's simply saving (or indeed saving interest by paying down any other mortgage) which is the best way forward.

Very lucky escape - if you get any more unsolicited calls claiming big interest without risk in the next few weeks, immediately hang up.

Zoe.nash

Thanks for the advice, I’m so glad I came on here. We have rented a house out which we have now sold, when it goes through after we’ve paid off debts we will be left with £117000. I will pay some off my mortgage on the house we live in but am tied in for another 3 years so think I can only pay 10% ATM, I’m just not sure what to do with the money so thought invest £50000 and put the rest into a savings account. Maybe going all out to reduce my mortgage would be the best thing to do?

AnotherJoe

There is a calculator in here which will tell you if that's worth doing or if you post the numbers - total mortgage, rate, years to run, early repayment charge, amount you'd pay off there always someone will do the calculations.

Zoe.nash

Roughly we owe £142000 house is worth approx £475000. We pay £840 per month, the exit fee is around £5000. Thanks

AnotherJoe

Zoe.nash wrote: »

Roughly we owe £142000 house is worth approx £475000. We pay £840 per month, the exit fee is around £5000. Thanks

Interest rate on the mortgage ?

Zoe.nash

Interest rate is 3.49, 17 years left

Zoe.nash

Sorry interest rate is 2.44

AnotherJoe

You might want to post this on the mortgages board to check my numbers are right, but here's my back of a fag packet calculation.
If you paid off £117k from your mortgage you'd save £117k X 2.44% x 3 years = £8,500
You'd have to pay £5k ERC, so now your savings are actually £3,500
If instead you put the £117k in a 3 year fix savings account you'd make a little bit more call it £9k but have to pay some tax. Lets say £2k tax, so you'd pay £10k in mortgage interest, get £7k in savings interest after tax and be £3k better off (10k paid out and £7k in).
So, really very little difference, £500 over 3 years if you do pay it all off now.
Even if you coudl get a better mortgage rate 2.44% is quite high, if you coudl drop to say 2% thats a 1/2 % savings but whats that only another £500 over 3 years? If you did do this you'd need to do it all now, once you get to 2 years it definitely wont be worth it as the ERC will dominate.



I think for the flexibility I'd stay as you are, overpay the max, put the rest in several high interest accounts, perhaps a mix of 1,2,3 year savers for best interest and minimised tax, , some in pension also, and revisit your mortgage when the current term comes to an end. See a broker near then and they can let you know the sweet spot for LTV and best rates.