Paid off mortgage - how to invest payments

ThriftComrade

My wife and I just paid off our mortgage! Obviously that is really happy days, now we are looking for ideas on where to put the 2k.month we will no longer be giving to the bank. 

My wife is pretty risk averse so we're leaning towards putting most of it into a regular saver, but from what I've seen they tend to limit the amount that can be added every month?

I saw a post that looked to be pointing at accounts with monthly higher limits but I couldn't find the actual list of accounts it was talking about. 

We have stocks & shares ISAs that we keep separately, but could also look at high paying dividend stocks/funds in a jointly held account? I'm open to suggestions on these too or even platforms with good access to better funds. At the moment I'm using halifax share dealing which doesn't have access to some of the funds listed on sites like justetf.com.

Many thanks for any help. I feel pretty weird being able to post the above, it doesn't seem that long ago that even getting a mortgage was a distant dream.

BJV

Well good on you. I am still 5 years away from settling my mortgage so congratulations.

To be honest I think I would get some advice from an IFA who will know your circumstances, without you haveing to post them online. 

Good Luck

ThriftComrade

I should have mentioned above that re: access I could see us potentially wanting to access in 24-36 months

penners324

Pension, pension, pension.


A far better and far more tax efficient way of investing 

TheMilkmansDad

ThriftComrade said:

I should have mentioned above that re: access I could see us potentially wanting to access in 24-36 months

in that case - best highstreet savings account probably the best bet then

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

DUBVENDOR

Money in the bank is risk free and around 5% or so Most shares dividend are lower unless held for the long term 10yrs plus , If it was me i would just bank it for now and see where the rates go .

Albermarle

ThriftComrade said:

I should have mentioned above that re: access I could see us potentially wanting to access in 24-36 months

Anything less than 5 years - cash savings. Probably a mixture of one, two and three year fixed terms. You could also set up some regular savers, but you are limited usually to £200 to £300 per month .
For tax reasons you may be better with some in Cash ISA's . Read the link supplied above carefully.

For the longer term investing is usually better than saving and the longer you can leave the investments the better. Investing via a pension is the most tax efficient, although you will not get access to until your late Fifties.

jimjames

ThriftComrade said:

now we are looking for ideas on where to put the 2k.month we will no longer be giving to the bank. 
My wife is pretty risk averse so we're leaning towards putting most of it into a regular saver, but from what I've seen they tend to limit the amount that can be added every month?

Regular savers that you've mentioned do have limits but as the monthly amount that was mortgage payment is also limited so that shouldn't be a problem. YBS is £500 per month and you can have 1 each.. Others are £200-£400 per month so I'm sure between you there's a home for all that mortgage payment. With these you'll get 6%-8% interest so more than an instant access account.

Unless you have a specific need for the money at a certain date there is also no need to have all of it in the same place. You could add to the S&S ISA or pension with some too.

caeler

When I paid mine off I depleted all my savings so I’ve spent some time building back up. Now I have a mix of fixed and easy access accounts using my ISA allowance as well.  I’ve just been keeping an eye on MSE Best Buy accounts. Managed to get some cash in the NS&I 6.2% fixed term bond which got withdrawn last month so got pretty lucky there! I’m pretty risk adverse too so I’ve stuck with savings rather than investments. I’ve salary sacrificed more into my pension too.  Remember to have some fun now your mortgage free! 

Beddie

ThriftComrade said:

I should have mentioned above that re: access I could see us potentially wanting to access in 24-36 months

Well done getting the mortgage cleared! It's best to open savings accounts, not investments, for that time period. If you've used up your ISA allowances then any of these will suit - over 5% and easy access.

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Green_hopeful

If you or your wife are higher rate tax payers and near 55 you could consider investing it in your pension. You would get tax relief on it and you can start withdrawing it at 55. Potentially depending on your pay you could get 40 percent relief on it. It’s too complicated to fully explain without knowing your situation but I would have invested my spare money in a pension had I understood a couple of years ago. Instead I focused on saving it and didn’t get the tax relief which would have made it grow much quicker than any interest. Obviously when you withdraw it there is a potential tax liability so you would need proper advice with full facts.