Financial plan sense-check and savings advice

WanderingKiwi

I am remortgaging my flat using the Let to Buy scheme: which will get me a buy to let on the current flat (covered, just, by the rent), and the ability to release 100k equity, to buy a flat to live in next year. I am not 100% sure I want to buy, but with interest rates so low I am fixing into a 5 year fixed term buy to let mortgage on my first flat, which means if I don’t do this now I won’t be able to do it for another 5 years. Which, given I am late 30s, seems like a long time (as in, a lot could happen in that time)

I have my own business and can work from anywhere - so pre-corona I was travelling and working remotely - but obviously this life-plan needs somewhat reviewing at the moment! The outcome of which is that I am currently living with some family, a situation I am keen to become independent from next year.

So my question is, having ascertained that the above plan is probably the best for me given my uncertain circumstances, what is the best way to keep the money as safe as possible from rising inflation rates, and negative interest? My current plan is: 50k into premium bonds, 50k into a notice account fixed saver for a year (there is one at 1% I see on MSE)

I understand I can’t have my cake and eat it, and that no one can predict inflation and interest rates. I am quite risk averse, but I think the prospect of not being able to buy myself a ‘base’ over the next 5 years is more anxiety inducing than potentially losing some money due to inflation. And I feel/ hope that by mid-end next year I will know if I will use the money for this purpose or not. If not, I guess - crazy as it sounds - I could pay it back in 10% overpayments. But I am worried about it losing its value a lot in the interim.

Is there anything I haven’t thought of? How much could I really lose on inflation? I am new to this and learning as I go so any advice appreciated.

tacpot12

Why can't you buy a flat immediately you get the equity from the Let to Buy scheme? House prices are rising faster than inflation, and will only continue to rise while properties remain in short supply. 

Another_Saver

tacpot12 said:

Why can't you buy a flat immediately you get the equity from the Let to Buy scheme? House prices are rising faster than inflation, and will only continue to rise while properties remain in short supply. 

... I do love a nice prediction.

WanderingKiwi

tacpot12 said:

Why can't you buy a flat immediately you get the equity from the Let to Buy scheme? House prices are rising faster than inflation, and will only continue to rise while properties remain in short supply. 

Thanks for replying- I should have mentioned I am having some medical treatment in early Spring next year and don’t want to create any stress around that. So earliest would be the summer- so I could just fix it for 6 months.