Money from sale of house

Diane_Biggins

I have sold my house and it is nearly finalised. 

My boyfriend was renting and bought a new build via help to buy. Ultimately the new build is both of ours but he is on the mortgage for five years to allow time to sell my house.

We are both living in the new house and we used the help to buy equity loan so that the mortgage wasn't too high.

After fees etc. I will come away with just over £80,000.00 from my house sale once the mortgage is paid off.  I will be paying the equity loan off.

My boyfriend put £30,000.00 as a deposit also on the new build. 

We bought the new build house for £230,000.00.

The equity loan is £46,000.00 but this type of house is now on the market for £235,000.00.

Do you think I should pay the equity loan ASAP once the money is in my account?

Also I want to keep some of the money for things for the house but I want to save some money to put towards the new house when we remortgage the house and I go on the mortgage. I want to put £15,000.00 towards it. 

Please can you advise where best to save the money and how it is best to legally document what my boyfriend has put down on the house and what I have to protect both of us in the future? 

I look forward to your response. 

Thanks

LHW99

With regard to the amount you want to save for when you remortgage, probably a fixed savings account would be best, because they give you slightly better rates than instant access. You could choose 1 year, 2 year etc terms, depending on when you think you'd need it. None of the rates are very high though, have a look here

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

george4064

The equity loan is £46,000.00 but this type of house is now on the market for £235,000.00.

Do you think I should pay the equity loan ASAP once the money is in my account?

This is entirely down to you and your boyfriend, assuming the interest rate on the mortgage is reasonable then you would be better off making the most of your money and keeping the mortgage whilst investing the cash you have in pensions/ISAs etc.

Also I want to keep some of the money for things for the house but I want to save some money to put towards the new house when we remortgage the house and I go on the mortgage. I want to put £15,000.00 towards it. 

Please can you advise where best to save the money and how it is best to legally document what my boyfriend has put down on the house and what I have to protect both of us in the future? 

For short term savings, keep things simple and stick it in NS&I premium bonds. This is easy access so you can withdraw it easily when required.

In terms of legal documentation, you should speak with a solicitor to put things in writing. A key question you need to consider is whether you want to be joint tenants or tenants in common, read more about this here: https://www.bonnetts.co.uk/2020/01/15/joint-tenants-vs-tenants-in-common-pros-and-cons/

md258

Make sure your money (and your home) are protected if you or your partner break up/die