To Save or to Overpay on Mortgage?????

thenap80

Nationwide ISA at moment is 4.90% for info.

thenap80

Is there any chance Nationwide would charge me for transfering the ISA I have with them?

Lokolo

Sorry I had dinner

You can open with Post Office for this years allownace and transfer. The Barclays Tax Haven ISA does not allow transfers in.

What you can do is go to Post Office to open an ISA (you maybe able to do this online for ease), deposit £3600 or however much you have. Then you will need to contact them so you can transfer your Nationwide (if you want) to this ISA.

Nationwide won't charge you. You will likely lose about a months interest. Basically what will happen is, you fill in the form. Post Office contact Nationwide, Nationwide close the account and make a cheque out for the amount + interest, mail it to Post Office, Post Office put it in your account. This can take around 4 weeks, so that period you will lose interest.

thenap80

One more question if I may....
So do Nationwide calculate how much interest I have earned pro rata for this year because they have only paid it at end of financial year in past years.???

Many Thanks
Barry

ian-d

Lokolo wrote: »

Depends. What interest rate are you paying on your mortgage?

It is very wise to overpay mortgage unless there are downfalls. Sometimes mortgage provider will put charges on if you overpay too much or something, which means you lose out more than anything.

Average 5% on savings accounts, and mortgage around the same rate, but comes out of a fixed term agreement in December so will be higher. What are your thoughts, assuming no penalties for overpayment? Do you know of a calculator to see whether it's worth it?

obsessed_saver

This thread will tell you which ISAs are available now:

http://forums.moneysavingexpert.com/showthread.html?t=401374

Read the first post and it will point you to double check with Moneysupermarket or something similar.

thenap80

ISAs again....

If I pay the 3600 into an ISA account but the account has already got say 10,000 already in it, then do u get the tax free interest on the total? So I would get 6.25pc on the 3600 and the 10k at the end of the year???


Thanks
Bazza

Baldur

thenap80 wrote: »

.....do u get the tax free interest on the total?...

Yes you do.