garfro

anybody got any ideas how much interest I would get monthly on approx 250,000 pounds and what would be best type of account to earn

also approx mortgage payment on 50K

my plan is to sell up here take a small morgage payn cash for rest and have 250k in bank.....i want to do as little work as i can or do something with no stress
can it be done?
G

spottydog

Do a search in google.co.uk for mortgage calculators on UK websites, this will give you an idea of the cost of the mortgage as it depends on the length of the mortage, interest only or repayment etc. Current Bank of England base rate is 4.75% with a good cash savings account you can expect to get this (before tax) per year and maybe slightly more to start with as a bonus for joining that bank. Mortgage standard variable rates are generally about 2% higher than BofE base but you can get deals (maybe 0.5 to 1% above BofE base) if you are willing to lock yourself in with a company for a fixed period of time.

At the moment there is talk that the BofE will reduce interest rates and normally when this happens most companies reduce the rates they give savers immediately but leave mortgage interest rates (the money they get from borrowers) unchanged.

Since you are talking about quite a lot of savings it would probably be a good idea to speak to a Financial Adviser to get the best solution.

SANDRAPAUL

Approximatley £814 per month. ING Direct computations at 5%. I have already accounted for tax which is taken at source. Whether this rate drops as the BOE drops rates as UK dives further into recession is anyones guess!

Roger

When you initially transfer your cash to the UK will you be resident? Thus would it be better to open an Isle of Man Tax-free account (though I believe that they are starting to charge a retention tax).
Roger

MattOR

In case your money is in USD you can also open a dollar account on the Isle of Man and move it to a sterling account when the exchange rate is more favourable. I've no idea what the interest rate is though and you need a high initial investment.