What to do with money

[JessicaRabbit23]

Hello
im Looking for advice really as I have no idea what I’m doing. I really struggle with phone conversations so the last two times I have had appointments with unbias the home office I just haven’t answered because i struggle so much.

I have a big pot of money. I want to move later this year or early next so I’m limited with cash isas as I don’t want to delay moving or get charged.

I have put 50k into premium bonds, shall I give my husband 50k and set this up for him so it could double the chances of winning?

I have put 115k into a 4.5% savings account which I can access and come out of instantly if needs be. Had no idea this would be taxable but hey ho!

I paid £21k off my mortgage which was the maximum I could do without charges. Only a year left after August.

i read a thread on here about trading but that looks like a minefield and not sure if it’s really worth it if I’m going to move? Is trading a quick return?

I used to live pay check to pay check but now I am debt free (-mortgage) I am doing ok and want to get more out of my money before I move.

thanks in advance for any advice.

Is it not worth paying off your mortgage regardless of the charges? Surely the interest remaining v charges is negligible.
What are you planning on doing with the house - selling it? If so, why not invest some into renovating to get the most out of it when you move?
Definitely open premium bonds in DH name too.
A lot of ISAs are available at slightly lower rates which are instant access too, so don't rule them out.
Could also donate some if there's a cause close to your heart

Yes I will be selling the house. Funnily enough I have builders here now finishing of a refurb I had done last year.

when I phoned Halifax regarding mortgage he explained so many times like I was a child learning to use my knife and fork for the first time. I still came away confused. This was my notes from that conversation. But they couldn’t offer me advice. I think it will be better to pay it all off come August this year.

Mortgage ends 1st August 2027
Settlement £227,780
Early repayment charge £4461.81
August 2026 -50% of £4461.81
July 2027 0% Charge

OVERPAYMENTS
10% Calendar Year 1st January -31st December
Most I can pay off per year £22,379.16

July 2027
No fees.

this was before I paid 21k off.

I should probably call them again and get some up to date figures.

ok I will do that this evening for him.

dont want to spend too much as its inheritance and could have to pay some back if I have missed anything so holding out for another few months which ties in nicely with August.

no to charities at the moment.

Following with interest. Next year we will be selling our family home before spending a year abroad (sell rather than rent as I’ll get more in interest than rent without the hassle). I will be buying within 14 months of selling and am risk adverse. I have invested in stocks and shares before with the help of a financial advisor but I didn’t really make that much and again, risk.
But we need more info about your circumstances. How much money is remaining? Is it above the standard protection limit (£120k)? Are you planning on using all or most of the cash for your next purchase? Can you tie your money up for a full year? How much other income do you have and will the interest push you into a higher tax bracket?

Where are you going for a year? That sounds nice! I wish my kids were old enough to do something like this they are all still in primary.

I think the rush for me is my eldest is in year 4 and I feel like if I wait a whole year I will be pulling her out at an annoying time. I may even stay. I mean I am blessed where I am but I could do with a 4 bed and the thought of a loft conversion makes me unwell. Also my mum lives in Essex and I’m Hertfordshire and I can get a lot more for my money where she is. I live in ex council estate. Big house, near the school. Downside annoying neighbours opposite but my son has a best friend next door to us. There’s a lot of pros and cons. I’m about 200k short of my dream house where I am now and can’t remortgage or port as hubby is into his first year self employed.

I work part time and some months I don’t even pay tax depending on shifts so I am not sure about my tax at all. 😩

I have a nice life. Could stay here and be happy could also not stay here and be happy.

wont have a school
hour easy job if I move but no mortgage to pay so that sorts itself out. Being nearer to my mum she could do school runs and I could get a job at Stansted airport I just don’t know. 🤣 I’m overwhelmed

£262k just sitting there remaining. Will be 212k after I sort PB for hubby. House is worth 375-£385k. I’m protected for 6 months from inheritance so not worrying too much about it in my account atm! Was going to put 100k into HSBC to get all the benefits that comes with it

It's a short time so really only access accounts, bank or building societies, make sure you keep each account under the FSCS protected amount and check that the different banks, etc are not related so you don't go over. I would avoid S&S it's quite high currently and you could lose money when you sell, also the international situation makes it all a bit precarious.

What’s your current mortgage interest?

If you're looking to move soon, you're stuck with cash or premium bonds.

If you haven't done so already:

£20k each in a cash ISA this tax year and next.
£50k each in PBs for your DH as well as you.

The rest in the best paying standard savings account. You'll pay tax on the interest but that's life.

Unless you're still on an ultra low (sub 2-3%) fix, pay some more off the mortgage next time you can do it without penalty. What is your mortgage interest rate?

I'm not that sure about premium bonds, if you get average or worse luck the returns are pretty poor. If you are not going to be into 40% tax or higher you could probably do better in standard savings accounts, again you could split between you and DH to maximise tax allowances. Of course you could be very lucky and get a big prize on pbs, but the odds against are huge.

Only pay off the mortgage when the early repayment charge finishes. If you can overpay without incurring a charge with the Halifax check back with them then do that. What’s your pension like? I would be looking to up my workplace pension contributions to max allowed or start a sipp

I’m on 2.38% fixed rate until August 2027. But Halifax did say to me call in January and they might let you off any fees as it’s only 6 months early.

yes I’m going to do his PB tonight. Ok. I will look at the cash isas it makes sense if they are tax free! And it gets rid of 80k Just don’t want to be tied down.

how do I work out how much interest I will pay on savings please? Is it 20% of the savings. I don’t pay any tax at the moment with my job

I have put 50k into premium bonds, shall I give my husband 50k and set this up for him so it could double the chances of winning?

This is what we do, all money is split down the middle to be most tax efficient, we have no mine / his.
When I received an inheritance, it was put into PB's, ISA's etc in both our names. Likewise when I retired and received my TFLS, it was split between us both.
Doing this at this time of year is even more tax efficient, you can put both your allowances away before April 1st and the same again after this date (PB's excluded as when you both have FH that is it).

Premium bonds are tax free prizes and cash isas you won’t pay tax as that is the benefit of an isa.

If you’re employed and paying taxes via PAYE then HMRC will just adjust your tax codes. If you’re self-employed you might need to do a tax return.

I’m still very young but have 9k in one pot and 4k in another I’m working part time atm rarely paying tax or NI (school hours 3 days a week) I do need to up my hours but I’m not ready for that just yet. I’m also on carers allowance. My dad died at 67 so to be honest I don’t really feel the need for a massive pension. He died single divorced and that pension money just went nowhere he was getting over 2k a month! Crazy!

That’s quite low mortgage rate, I would keep it until you sell the house. Put your money into highest paying cash accounts, you can out save your mortgage rate.