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Transferring out part of cash ISA
cb101
Posts: 89 Forumite
Hi
I consolidated 3 ISAs into an ISA with IF in order to use it to offset my mortgage.
Does anyone know if I will be allowed to transfer out PART of this ISA to another provider when my outstanding mortgage becomes less than the ISA balance? I don't really want to have more money offset than the outstanding mortgage balance when I can get a better ISA rate with a different provider.
Hope that makes sense
Thanks
C
I consolidated 3 ISAs into an ISA with IF in order to use it to offset my mortgage.
Does anyone know if I will be allowed to transfer out PART of this ISA to another provider when my outstanding mortgage becomes less than the ISA balance? I don't really want to have more money offset than the outstanding mortgage balance when I can get a better ISA rate with a different provider.
Hope that makes sense
Thanks
C
0
Comments
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That depends on the stance of the 'new' provider to transfers and (less often) the 'old' provider (IF) too
First off check with IF that you can definitely do a part transfer out
Assuming they say yes, approach a new provider and check that they accept part transfers in.
ISA splitting is possible with a large number providers so I don't see you having any difficuly provided IF co-operate
Should IF not allow partial transfers however then you simply need to identify two other providers that accept partial transfers themselves. Then you would transfer 100% from IF to provider 'A' - transfer the amount you require to provider 'B' (the ulitmate home) and transfer 'full' remaining amount back to IF from 'A' [Poor 'A'!].....under construction.... COVID is a [discontinued] scam0 -
You can transfer out any amount of prior years cash ISAs. You cannot part transfer the current year. (Year means tax year.)0
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Milarky- that is very clever- I hadn't thought of that :-) I guess I just need to find providers who will let me part transfer
RW thanks I guess I just need to check IF will allow it0 -
My experiance of partial transfers is a nightmare. I requested a partial transfer from Abbey to LLoyds TSB, but they transferred the whole lot. And then Lloyds wouldn't permit a partial transfer back out to correct it.
What Millarky suggests will work, however, I'd suggest another way - only one bank involved in the 'splitting' process.
Open a second ISA with whoever your current provider is, and transfer the partial amount from ISA1 to ISA2 (leaving the remainder in ISA1) . As long as you only add new oney to one or the other in any tax year this is OK. And since only one bank is involved there can only be one person to blame if it all goes to pot.
Then once ISA2 is up and running, do a full transer out to the new istitution.
The above assumes that your current provider permits partial transfers in and out. The ISA2 account doesn't have to be anything flash, or be top of any interest rate boards because the money will only be in there for 30 days max.
Cheers,
Judwin0
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