combining ISA savings for offset mortgage

mine_only

MY husband and I each have our own mini cash ISAs. I was wondering if we could pool our ISA savings into 1 pot and use that to offset our mortgage?

OR if this is not possible, can our separate ISAs be used to offset our mortgage if they are all held by the same provider?

Trying_to_be_good

Very few offset lenders allow you to offset ISAs - Woolwich is one of them.

You could of course close the ISAs and pay into any lender's offset savings account, but would lose the tax-free status for when the mortgage is finally paid off.

ISAs are Individual Savings Accounts, and as such can only be held in one person's name.

dimbo61

I have an offset mortgage and when the ISA,s were paying a better rate than my fixed mortgage I paid into ISA,s but now the ISA,s are giving a poor return I have moved my ISA money back into the offset.
Thats what is so good about offset mortgages
Read the TIMES on saturday if you can very good report on offset mortgages !!!

gil13

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6292752.ece

mine_only

Thanks for your replies.
The best rate I have found so far for offset accounts is 1st direct-tracks for 2 years at BOE + 2.39%.

Dimbo69: What do you mean by moving your ISA in an out of offset? I thought once the cash was withdrawn from the ISA account, that was it. You couldn't re-deposit the cash into an ISA.

Trying_to_be_good

Mine-Only - you're right, if you withdraw the money from a cash ISA, you can only put it back as 'new money' at a rate of the annual allowance, so £3,600 this year and £5,100 from next year.

I thought the Times article was very poor on that point.

I want to keep the tax-free wrapper for the long-term, so will go for a non-offset (cheaper) fixed rate rather than an ISA-allowing offset.

dimbo61

You are both right the best ISA i can get is 3.51% Natwest for transfers so for me better to save in my offset account !!

dimbo61

Hi mine-only,
The BEST !!!! rate is first direct boe+ 2.39% is cheap now but if/ WHEN base rates go up that might be an expensive mortgage.
I cant afford to take that risk so its a long term ( 5 year ) fix for me.
I also drip feed a couple of regular savers into Barclays 6% before TAX.
I am clearing my only debt ( but its huge!) first and then saving for the future and getting the best return for my hard earned money GOOD LUCK

gogsboy

dimbo61 wrote: »

You are both right the best ISA i can get is 3.51% Natwest for transfers so for me better to save in my offset account !!

Is that rate still available?

Trying_to_be_good

gogsboy wrote: »

Is that rate still available?

Nope, it's dropped, and is a variable rate not fixed, the only guarantee being it won't be lower than BOE base rate.

The majority of my ISA money is in a 6.15% fix until December, so that's still good.

Offset fixed deals for 5 years are getting on for 5%, so you need to be getting very good savings rates to match that. Or just get a cheaper non-offset fix, and hope the savings rates go up to something reasonable in the five years (perhaps wishful thinking!).

It's all a gamble!