Saving Long Term

[joe1]

Hi,
I have to find £40,000 in 7.5 years to pay of my interest only mortgage loan.
I calculate that this equates to saving £15 a day.
What is the best way to do this please.
Most savings accounts seem to be for set periods eg. 1 year etc
I need one that goes for the whole period.
Thank you for any answers or advise.
J

[TonyV]

You could have a look here. Don't think you will find one that goes that long, you may have to reinvest periodically. ISAs are one way.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

[TonyV]

More advice here.

https://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax/#invest

[twix123]

Speak to a professional Independent Financial Advisor. They should be able to advise on a package that would cover your needs, whether it be an ISA, Endowment Policy or other investment.

Do you not already have an insurance policy covering the borrowers lives?

[Hopkirk]

To save that much you will probably have to massively reduce your spending or cash in your pension.

Did you get another job after your resignation?

[fiction-factory]

The key thing is to ensure you save the required amount regularly. The interest rates will no make a huge difference. There are some regualr savers that pay 5%pa but they often require a linked current account. There are 5 year savings accounts you could take out now and then you could reinvest for teh remaining few years.
But is there an option to repay the mortgage earlier, or at least make 10% overpayments each year- that would be much cheaper.
Discuss with your lender too- they may convert it to a repayment mortgage for the last 7 years or even extend it to say 10-15 years

[pansypotter]

a fixed rate saver?

[Peter Pedant]

7.5 y is too short to bank ( ha!) on accummulation as a help

that is getting to year 8 and s/o saying - oo you should have done XYZ coz that has grown 300% instead of the crappy 1.5% of your savings account !

so at the start of the month - put £450 into an account - dont go on holiday an ddont spend on xmas.....

we kinda all have done that

[Peter Pedant]

hey good advice from FF !

[joe1]

Thanks all. The idea of looking to change to repayment and extend term sounds good. It is covered by life assurance but only in event of my demise ! All your replies much appreciated - thanks again. J