Lump sum to be used as deposit - what to do inbetween.

peteuk

Hi, 
In a couple of months time I am expecting a tax free lump sum of approx. £40K, after which I will be getting a pay out of around £1200 per month.  
I am starting to save an emergency fund  (currently £2000 hoping to have this to around £7000 to £8000 by the end of July) and by my calculation with a mortgage of £320,000 a 10% deposit will be £32,000. This means there will be about £8000 (may be more, may be less)  left over. Obviously if we buy cheaper the deposit will be less and the more we have left.
So my question is two fold. 
Firstly what to do with the lump sum between receiving it and paying it out as the deposit?
Secondly if any left what do I do with it?
Cheers 
Pete

kinger101

(a) leave it in the bank in an instant access savings account.  You can't invest in anything else over that timeframe.  
(b) leave it in the bank in an instant access savings account.  There might not be as much left over as you think once you've paid legal fees, mortgage fees, surveys and stamp duty.  But you'll need rainy day money.

peteuk

kinger101 said:

(a) leave it in the bank in an instant access savings account.  

Thanks, I was thinking that but wasn't 100% sure. Hopefully if we can get things to a line it wont be in there too long. 

eskbanker

peteuk said:

by my calculation with a mortgage of £320,000 a 10% deposit will be £32,000

If you have a 90% mortgage of £320K then that would mean a property value of about £355K, i.e. the 10% deposit would be more like £35K....

Eco_Miser

kinger101 said:

(a) leave it in the bank in an instant access savings account.  You can't invest in anything else over that timeframe.  
(b) leave it in the bank in an instant access savings account.  There might not be as much left over as you think once you've paid legal fees, mortgage fees, surveys and stamp duty.  But you'll need rainy day money.

You'll probably also want furniture, and appliances, and to clean and decorate the place, and the council may well want council tax for the rest of the year in a lump sum, and the utilities may want deposits.