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Lump sum - what to do?
Helpwithfuture
Posts: 5 Forumite
Odd situation and Im trying to see the best way forward, any clever suggestions and recommendations welcome!
A few years ago we relocated abroad and are established in our new country. Jobs, income etc good, outgoings bit lower due to changes in circumstances although we are in a high tax/high cost of living country. So far so good. Plan is to stay here for between 2-4 years more and then reassess where we want to be. Both UK citizens so can move back there no matter what is happening politically. Not 100% sure we want to settle in this area even if we stay in this country, so no interest in buying property at present.
We had planned to rent out our UK house until we returned/made up our minds where we should live, however circumstances were not suitable (need for maintenance, difficulty finding suitable tenants) and we've ended up a bit hamstrung with the need to send money over to pay the mortgage and also service credit cards/debt in the UK. Situation was untenable so we have, with a bit of regret sold the place. So we will have the a lump sum within the next week or so.
First priority is to pay off all house sale fees, credit cards and overdrafts. (These boards have been excellent for us in reducing our debts/keeping interest free but soon we will be Debt Free! for the first time ever as a couple!)
This should leave us with between 40-60000 in a UK bank account. Exchange rate to where we are now is utterly crap (its the only reason we were able to afford the last few months because its in our favour to send money to the UK, but is very poor the other way, and with Brexit uncertainty may get even worse) We dont need a lump sum over here at the moment, but this represents the total of our savings. Having said that, once we are free from the double whammy of rent/mortgage in two countries and servicing debts, we will rapidly be able to save money here, and have agreed that after a few tweaks to our life here, that is our next priority.
The question is what to do with the lump sum in the UK? We cant use UK based ISA or tax free savings as we are not resident there (paying tax elsewhere). It doesn't seem the right time to take money over here (and we dont really have a plan for it here) although the pound may drop further. Kept together the money would be great as a deposit on a new place and relocation expenses etc if we move back to the UK, so we are keen not to lend it out or fritter it away, but where should we (and can we?) put it for best security and possible interest.
Any thoughts on what you would do in these circumstances?
A few years ago we relocated abroad and are established in our new country. Jobs, income etc good, outgoings bit lower due to changes in circumstances although we are in a high tax/high cost of living country. So far so good. Plan is to stay here for between 2-4 years more and then reassess where we want to be. Both UK citizens so can move back there no matter what is happening politically. Not 100% sure we want to settle in this area even if we stay in this country, so no interest in buying property at present.
We had planned to rent out our UK house until we returned/made up our minds where we should live, however circumstances were not suitable (need for maintenance, difficulty finding suitable tenants) and we've ended up a bit hamstrung with the need to send money over to pay the mortgage and also service credit cards/debt in the UK. Situation was untenable so we have, with a bit of regret sold the place. So we will have the a lump sum within the next week or so.
First priority is to pay off all house sale fees, credit cards and overdrafts. (These boards have been excellent for us in reducing our debts/keeping interest free but soon we will be Debt Free! for the first time ever as a couple!)
This should leave us with between 40-60000 in a UK bank account. Exchange rate to where we are now is utterly crap (its the only reason we were able to afford the last few months because its in our favour to send money to the UK, but is very poor the other way, and with Brexit uncertainty may get even worse) We dont need a lump sum over here at the moment, but this represents the total of our savings. Having said that, once we are free from the double whammy of rent/mortgage in two countries and servicing debts, we will rapidly be able to save money here, and have agreed that after a few tweaks to our life here, that is our next priority.
The question is what to do with the lump sum in the UK? We cant use UK based ISA or tax free savings as we are not resident there (paying tax elsewhere). It doesn't seem the right time to take money over here (and we dont really have a plan for it here) although the pound may drop further. Kept together the money would be great as a deposit on a new place and relocation expenses etc if we move back to the UK, so we are keen not to lend it out or fritter it away, but where should we (and can we?) put it for best security and possible interest.
Any thoughts on what you would do in these circumstances?
0
Comments
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Might NS&I be a possibility? Interest rates not great but a safe haven?
https://www.nsandi.com/i-live-outside-uk-can-i-invest-with-nsi0
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