De-risking S&S ISA prior to house purchase

jdl920p

Hello, thought I'd garner opinions on here about de-risking S&S ISA before using the money as a deposit on a house.

Scenario is about £50k held in HL ISA and LISA (approx £25k in each), currently invested in global equity trackers.  Looking to use the money as a deposit on a house in about a year's time.  So therefore thinking about de-risking given market volatility

Options as I see it are:
- Transfer to HL cash ISA, paying 4ish%
- Leave in S&S ISA and invest in low risk funds
- Transfer to another 'best buy' cash ISA
- something else?

I am leaning towards transfer to HL cash ISA, although not sure I can do that with the LISA.  But be interesting to hear what others would do.

Many thanks

jimjames

Move to Money Market fund in S&S ISA?

Roger175

jimjames said:

Move to Money Market fund in S&S ISA?

Agree. This would be the simplest way. I would not risk house deposit money over that timescale being in equities, especially with Trump's idiocy being far from over.

jdl920p

Any particular money market fund you would recommend?  Or are they pretty much of a muchness?

Labtebricolist

Agree with MMF.  They aren't totally risk free, but are generally considered very low risk.  I have some dry powder in the Amundi smart overnight return ETF (CSH2) which broadly tracks the SONIA rate.

jdl920p

Thanks all

Royal London Short Term Money Market Accumulation seems like a good low cost option

ColdIron

If using an open ended fund such as that one with HL you need to factor in the 0.45% platform charge. ETFs etc are capped at £45 pa

For short term objectives, especially one that has a firmish date, I think cash is the gold standard

Work out the real returns, including charges, and ask yourself is it worth it?

poseidon1

Don't over look HL's range of cash isas within their Cash Hub. Hopefully they can easily facilitate internal transfers from your S &S Isa.

artyboy

jimjames said:

Move to Money Market fund in S&S ISA?

Exactly what Mrs Arty and I did recently. I got out before Trumpageddon, but managed to get her out when it had mostly recovered. Everything we currently need for funding is in CSH2 until we are ready to exchange...

Eyeful

If you do intend to move the money into a MMF make sure it is a Short Term Money Market Fund. 

Short Term Money Market Fund: 
These money market funds are investment vehicles designed for short-term cash management needs, offering a low level of risk and high liquidity.

Here are three to consider:
Royal London Short Term Money Market Accumulation Fund
Vanguard Sterling Short-Term Money Market Fund.
Fidelity Cash Fund

aroominyork

Yes, MMF could work for you but to ensure you understand them it's worth reading this https://monevator.com/money-market-funds/