What to do with my £100k mortgage money

megsleeds

Hi everyone, 

I would like some advice.

Before the corona virus lockdown I was granted a remortgage on my current property and with it I was planning to
purchase a Portuguese bolt hole. The money has not yet hit my bank account but is not far off. Obviously I am
unable to travel to Portugal at this time and we do not know when travel will become possible again.

Should I tell the bank to hang onto the cash until I am ready to receive it? Is this even an option? The mortgage offer expires 28 sept so I have some time.

or do I take the money and invest it in something temporarily? baring in mind when I get the cash I will have monthly repayments to make. 

Many thanks 
Megan

Comms69

What's your mortgage rate? You may be able to mitigate any losses by investing in some short term options.

Ultimately though the bank wants the money to be earning them something. They wont sit on it doing nothing.

davidmcn

megsleeds said:

Should I tell the bank to hang onto the cash until I am ready to receive it? Is this even an option? 

Hard for us to say without knowing who the lender is and whether you've actually requested them to draw down the funds. Best if you contact them. I presume it's on a deal with a penalty if you repaid it straight away?

AdrianC

Your chances of getting an equal or higher rate of return post-tax to what you're paying are incredibly slender, unless you're willing to take on relatively high levels of risk...

I'd definitely delay the draw-down.

Comms69

AdrianC said:

Your chances of getting an equal or higher rate of return post-tax to what you're paying are incredibly slender, unless you're willing to take on relatively high levels of risk...

I'd definitely delay the draw-down.

That's true, but having money in the bank could pay for itself once this is over and house prices are slashed globally.

Crashy_Time

Would imagine Portugal is going to feel some economic heat from all this?

theselfishaltruist

It is your money and you will need to decide what to do with it.

Cocaine and strippers?

Seriously though, If this was my money, I would invest it all while I wait. I would diversify the money, so probably 30k into a standard savings account which has bad interest, but it is safe, 30k into something safe like a gold/silver ETF (crisis-proof), and another 30k into stocks (probably low-risk mutual funds like FTSE or S&P 500 tracker) which is risky, but potentially profitable.

In theory, it could be a great time to put your money into the stock market; it is very hard to say with all that's happening.

But, totally up to you what you do with it.

Although, DO NOT leave it in a current account as the interest is usually terrible and you're just throwing the money away every day (when you consider inflation).  

[Deleted User]

megsleeds said:

Hi everyone, 

I would like some advice.

Before the corona virus lockdown I was granted a remortgage on my current property and with it I was planning to
purchase a Portuguese bolt hole. The money has not yet hit my bank account but is not far off. Obviously I am
unable to travel to Portugal at this time and we do not know when travel will become possible again.

Should I tell the bank to hang onto the cash until I am ready to receive it? Is this even an option? The mortgage offer expires 28 sept so I have some time.

or do I take the money and invest it in something temporarily? baring in mind when I get the cash I will have monthly repayments to make. 

Many thanks 
Megan

This is some crystal ball stuff because no one knows how long this situation is going to go on for.  If you decide not to take the money now I'm not sure when you'll next have the option to release equity to buy a holiday home as lenders are tightening up lending criteria and increasing the maximum LTV available. 

Crashy_Time

See Halifax for example.