3K Spare - Mortgage Overpayment or what?

BUTTERS

Hi guys,

Mainly just looking for a bit of advice here. I have £3,000 spare and am trying to find out what the best thing to do with it would be. Currently the money is in a HSBC ISA.

1. Overpayment on the mortgage - 100% Fixed for another 18 months 6.25%
2. Save for some deposit on our next house? Maybe in 2 years.
3. Leave in the ISA for the interest gain - Incase of an emergency?

Any help on this matter would be great help.

Many Thanks

Butters

riad_2

If the interest you earn in the ISA is more than the mortgage, you're better off leaving the cash in the ISA. Conversely is the mortgage interest is higher than the ISA rate, better for you to offset that cash against the mortgage.

If the rate is the same... I would lean toward the ISA as it gives u more flexibility incase you need that money in emergencies.

Chris2685

I would say leave the money in the ISA, because that will last forever and will be tax free forever, until you REALLY need it.

hostman

Put it in ISA.