Soldato
I just paid a 10k chunk off my mortgage and my monthly payments dropped £75. I was getting about £2 a month interest on it in my account. No brainer if you ask me.
Best Investment for around £7k - Left over savings from buying house
- Thread starter Ben3991
- Start date
Soldato
The catch is if they don't pay you for various reasons, what are you going to do?
They even have a page on it
https://www.londoncapitalandfinance.co.uk/security
An example of an asset backed security you may have head of are mortgage backed securities.
The reason the annual yield increases so steeply is because the longer you have to wait, the higher the chance it goes into default. Worse still, you have no idea what the underlying assets are and whether the fund is actually up or down on the principal.
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Soldato
Soldato
Associate
Keep it in the bank and keep topping it up. Not having at least a years salary tucked away is daft.
There's no way he's going to be able to get through £7k's worth of Kleenex. And I'm not certain what kind of investment that would be, anyhow. Would suggest the resale value is not stellar.
Soldato
Really? Say you earn £25,000 a year, it's going to take you about 10-15 years to save up a year's salary.
Ha, dream world for about 99.9% of the population.
Soldato
I would love to have this in the bank but I couldn't just sit on that amount of money without being 100% debt free.
the only time I would need this sort of money that isn't covered in some way would be if I lost my job, luckily if I did I would gain access to all my share options (plus redundancy) which would as a minimum cover all my debt and around 6 months of pay... current focus is reducing this debt should this ever occur to maximise my safety net.
Depends how you save it. Live with mum for a year and you will have £25,000 saved in 12 months. Live with mum for 2 years and you have £50,000. Live with mum for 4 years and you have £100,000 in the bank and no need for a 35 year (lol) mortgage.
After you buy house live with parents for a further 3 years, while renting out the new house and make ~15K per year from rent + the 25K from your job and....
in just SEVEN years you have £120,000 in savings as well as a £100,000 property as well as £25,000 per year of mostly disposable income.
10-15 years trying to save up £25,000 would be 10-15 years of absolute depression hahaha.
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Associate
Low paid folk manage to get on the housing market don't they?
this isn't the best thing to do imo
£10k is a big lump, one i'd rather have access to should i need too
open a santander 123 account. you need to put in £500 a month and you can have up to £20k in there
you get 3% on the balance and you need to have a min of 2 direct debits. i have gas and electric getting 2% cash back and mobile phone and internet 3% cash back which covers the £5 pm account fee
Soldato
Yeah i read that bit about five minutes after i posted. Doesn't look good at all in reality.
Where is this place where you don't get taxed and can live for free with all your clothes and food provided
Associate
This....