Most profitable way to invest £85000 for x2 years.

CMC67

I have just bought a new house but had to take out a 2 year fixed rate mortgage at 1.39% because my original home did not complete in time. I have £85000.00 from the proceeds of the sale and want advice on how best to maximize my returns from the sale over this 2 year period.

csgohan4

what is your risk appetite, investing in stocks and shares for 2 years is ill advised.

Maybe consider premium bonds, saving accounts, fixed rate accounts

You want high returns, you will have higher risk and conversely, Lower risk= lower returns 

There are similar posts to yours, have a look

ColdIron

Assuming you want no risk,  i.e. save rather than invest, you can get 2.00% with Investec via Hargreaves Lansdown Active Savings

TheMilkmansDad

Don't invest for 2 years, there's a chance you would loose money over that period.

Does your mortgage allow over payments? Most do, so if so max out an over payment straight away. Stick the rest in premium bonds and then over pay again next year (most mortgages allow 10% no charge over payments each year).

Albermarle

A possibility could be to save some of it and use that to reduce the mortgage in two years . At the same time invest some of it ( or put a lump sum in your pension depending what sort it is ) for the long term .

The idea is that the investment will hopefully  grow long term, by more than the extra interest you will pay on a bigger mortgage.

Some people would even advocate investing the whole £85K on this basis.

A lot depends on your overall financial situation , job security and personality, but worth a thought at least .

grumiofoundation

TheMilkmansDad said:

Don't invest for 2 years, there's a chance you would loose money over that period.

Does your mortgage allow over payments? Most do, so if so max out an over payment straight away. Stick the rest in premium bonds and then over pay again next year (most mortgages allow 10% no charge over payments each year).

Since they can a higher rate on savings than mortgage why bother with this? 

Daliah

ColdIron said:

Assuming you want no risk,  i.e. save rather than invest, you can get 2.00% with Investec via Hargreaves Lansdown Active Savings

2.05% at Monument Bank.

No, I hadn't heard of them before, either. But they have FSCS protection so I'd by happy to deposit £83,000 with them, allowing for the interest to be added and still stay below the FSCS limit. The remaining £2K I might put into some other account, or to pay for a holiday.

CMC67

TheMilkmansDad said:

Don't invest for 2 years, there's a chance you would loose money over that period.

Does your mortgage allow over payments? Most do, so if so max out an over payment straight away. Stick the rest in premium bonds and then over pay again next year (most mortgages allow 10% no charge over payments each year).

My mortgage rate is only 1.39% so investing it is definitely the way to go i was hoping some people might know of some obscure bank/ financial institution that might be giving a higher rate so put it out there to see what you would all come back with, but thanks anyway. 

Albermarle

Even if they are not well known and pay better than better known banks , they are still limited by the financial conditions of the time .
Anybody offering much over 2% 'guaranteed ' is a scam 

sevenhills

CMC67 said:

I have just bought a new house but had to take out a 2 year fixed rate mortgage at 1.39% because my original home did not complete in time. I have £85000.00 from the proceeds of the sale and want advice on how best to maximize my returns from the sale over this 2 year period.

If you were born in 1967, that would make you 55, in that case contributing to a pension and getting tax relief(20% or 40% for high earners)should be part of your options.

You could invest less than £30,000 into a pension and use the small pots rule if you need the money. You would need to get the correct rules about that.

Daliah

Only put deposit your money where you get FSCS protection. Double-check whether they are really covered: https://www.fscs.org.uk/check/check-your-money-is-protected/