What to do with house purchase money, now the sale fell through

[KatyMac]

DD has money to buy a flat and it fell through the day before exchange so she had the money in her bank account.

She is still trying to buy a flat but it could (will) take some months - so she has paid some into her premium bonds

What can she do with the rest? Most investments are long term - she could put some in mine and her dad's but will that look like we are gifting her when they do the money laundering when she finds a house?

Maximise her ISAs

No isa at all is it worth putting them in for 3-6 months?

Get independent financial advice is my best recommendation.

For 3-6 months I wouldn't put it into any investment vehicle.
I'd max premium bonds, then put into a high rate (hollow laugh) instant access or notice account.

I would do the premium bond thing but if she sees another flat she likes - she will need readily accessible money ( relatively ) so I would not tie it up in anything long term - possibly just a savings account. ?

I am sure there is better advice out there.

Yes investments seem unlikely

And as for interest accounts!

Is there an issue with putting some of the money in our premium bond accounts?

@Chasingsquirrels - oops - I think I just said you did - sorry. But I agree with you - sorry for not reading your post properly .

0.75% on a savings account on money savings expert!

Remember that only a maximum of 85k is protected in any one bank so put it all in a National Savings and Investment account where is is protected.

'Remember that only a maximum of 85k is protected in any one bank so put it all in a National Savings and Investment account where is is protected'

There are rules about 'temporary high balances' whereby money from a house sale up to I think £1m is still fscs protected for up to 6 months. But after that yes split between accounts

Yes that bit is sorted and it's in a joint account which I think helps

Does anyone know about the premium bond thing?

I think she should talk to a mortgage adviser about putting it in your Premium Bonds in case it looks as though you're giving her the money. But also, what if you win when she's put her money into your account?!

Do not invest, keep in premium bonds in HER name, and rest in instant access savings account.
Why would she put some in your name? She would in essence pass over legal ownership of the money to you. I am not saying anything would happen, however, if you were to divorce, it is your assets, if you were to become insolvent, it is your assets, if you needed means tested benefits, it is your assets.

If you take one thing from this thread, do not put the money in your name.

Also, as others have mentioned, it may look like a gifted deposit, not a major issue, but one to easily avoid.

Yes ivhad a feeling it was like that

Some weeks/months ago I did gift her about £5k

Will I need to redeclare that I she finds another property? I didn't take it back

@KatyMac

Yes ivhad a feeling it was like that

Some weeks/months ago I did gift her about £5k

Will I need to redeclare that I she finds another property? I didn't take it back

Yes, if it is going in as a deposit.

Most lenders have standard forms, in essence asking you to declare it is a non refundable gift. Not a major issue, as long as it does not make up a significant part of the value.

She doesn't need a mortgage - she inherited some money

Is there an issue with putting some of the money in our premium bond accounts?

For the short term the positive is it's easy access and completely safe. However, depending on the timing of when the money goes into them, you might not be entering in the draw for nearly 2 months.

I would keep it in the account if shes planning on purchasing something else soon. They get funny about large amounts moved around a lot. We had to give proof that our deposit money had been in our account for several months. Its to do with money laundering

Ask the bank, they are very good at this. It’s basically what they do.