I have a credit line secured on my house for £250k at 4%. I need to preserve access to these funds to pay for my divorce settlement without selling up (which I really don't want to do in the current climate).
I'm worried my lender is going to get around to downvaluing the property by 33% some time soon and this could well screw me totally (e.g. withdrawal of credit line).
So I'm thinking of writing a cheque and investing in something relatively safe and liquid until the money is needed (in about 6 months or so).
Given it's going to cost about £900 per month in interest, what would you put the cash into ?
It would be nice to mitigate some of the cost with interest and/or capital growth, though I'm aware that as a higher-rate tax payer I need 6.67% p.a. to break even and I'm not silly enough to think I can get this from anything legal in the current market. But even half that rate would be good to reduce my monthly loss by a few hundred quid..
Any thoughts appreciated...
Please note my name and/or gender may not be as appended to this post
- email account is a spam trap.