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Mortgage or ISA??
linzdelene
Posts: 115 Forumite
Hi, just after some advice on what best to do. Questions is simple - should we invest in another cash isa or put in an overpayment on mortgage.
Our money was tied up in a cash isa in Iceland which we now have sitting in our bank acount.
Our mortgage is roughly £155000 - currently paying £1060 pm. We make overpayments of £500 each month. On a fixed at 6.18%.
Best cash ISA is probably about 3.5-4%.
We would like to do something with £10000.
Should we make a lump sum on the mortgage? If so to reduce term or monthly payments. What is the best option.....!! Should we put into savings? We have a sum of money set aside for emergencies.
Help much appreciated....
Our money was tied up in a cash isa in Iceland which we now have sitting in our bank acount.
Our mortgage is roughly £155000 - currently paying £1060 pm. We make overpayments of £500 each month. On a fixed at 6.18%.
Best cash ISA is probably about 3.5-4%.
We would like to do something with £10000.
Should we make a lump sum on the mortgage? If so to reduce term or monthly payments. What is the best option.....!! Should we put into savings? We have a sum of money set aside for emergencies.
Help much appreciated....
0
Comments
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That's a high fixed rate. Certainly the rates would suggest putting it into the mortgage and reduce the term a bit but of course you would both be losing just over a year's tax free allowance.
On balance, I'd overpay I think.0 -
Personally I would overpay the mortgage in that situation, no question, as long as you have some rainy day money set aside..Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0
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