Thank you all for the great help and advice.
I have decided from the posts above definitely not to open the iMac now and go with the external route. I'm just looking for the fastest external SSD drive (USB-C or Thunderbolt) to use as a boot drive.
Thanks again.
I wouldn't worry too much about looking for the fastest drive.
Whilst it helps (obviously faster SSD is better), the biggest performance bump in general use is from the fact that SSDs have no moving parts. Which means accessing different parts of the disk, or responding under multi-tasking is much, much faster than waiting for the drive's read head to move (which under lots of random IO or accessing lots of small files is the biggest factor slowing down a hard drive).
i.e., even a "cheap" or "slow" SSD will likely outperform your hard drive in normal use by a lot.
edit:
Monterey = format the external SSD as APFS first.