Need newb advice on opening Stock and Shares ISA account....
Discussion
Looking for some advice on best to maximise savings interms of using the money to clear a substantial part of the mortgage in 3 years time, bare in mind we've never even had any financial products apart from cash ISAs and always been very conservative with saving.
Our mortgage is in 2 parts both are fixed at sub 2% rate with total LTV of about 36% at present with the debt split evenly across both parts. One part is coming out of fixed in 3 years time and the other in another 5 years both parts only have 7 years left on their terms, so the by the time we exit the 5 year fixed the mortgage debt will be very small. We normally prioritise paying off the mortgage off with overpayments but with the borrowing rates way below inflation that seems pointless.
We are lucky enough to have enough disposable income to essentially save up over the next 3 years to pay off the part of the mortgage thats coming out of fixed in 2028.
Normally we would just put the money into cash ISAs up to the annual allowance (£20k each), but I wonder if there is something better than cash ISA we should consider using? I had brief look at stock and shares ISA but TBH I wouldn't have a clue where to start versus the versus simple cash ISA options.
Any advice on what's the best way to make the money work smarter than just cash ISAs?
Our mortgage is in 2 parts both are fixed at sub 2% rate with total LTV of about 36% at present with the debt split evenly across both parts. One part is coming out of fixed in 3 years time and the other in another 5 years both parts only have 7 years left on their terms, so the by the time we exit the 5 year fixed the mortgage debt will be very small. We normally prioritise paying off the mortgage off with overpayments but with the borrowing rates way below inflation that seems pointless.
We are lucky enough to have enough disposable income to essentially save up over the next 3 years to pay off the part of the mortgage thats coming out of fixed in 2028.
Normally we would just put the money into cash ISAs up to the annual allowance (£20k each), but I wonder if there is something better than cash ISA we should consider using? I had brief look at stock and shares ISA but TBH I wouldn't have a clue where to start versus the versus simple cash ISA options.
Any advice on what's the best way to make the money work smarter than just cash ISAs?
I'm no expert, but I would say that global markets will be way too volatile over the next three years for you to guarantee any kind of positive return, and there is a fairly reasonable chance you will lose money in an S&S ISA over that period.
I have money in a S&S ISA myself, but I'm not expecting to want to access it for 10-20 years. If I knew I needed the money in 3 years then I'd have it in a Cash ISA, and switch every 12 months to get the best introductory rates.
I have money in a S&S ISA myself, but I'm not expecting to want to access it for 10-20 years. If I knew I needed the money in 3 years then I'd have it in a Cash ISA, and switch every 12 months to get the best introductory rates.
No IFA is going to suggest equities for money you need to be sure will be there in full in three years.
I'd look at cash ISAs or gilts or some MMFs held in a S&S ISA and if you go into it fully aware the money may not be there in full in three years perhaps consider some equity exposure.
I'd look at cash ISAs or gilts or some MMFs held in a S&S ISA and if you go into it fully aware the money may not be there in full in three years perhaps consider some equity exposure.
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