First Time ISA Saver

russppt

Hi
Would appreciate any advice.
I want to open an ISA, however, I have it in my head I should use any spare money or potential savings to pay off my mortgage capital.

Should I open and ISA or use the moneies to pay off the capital off my mortage?

Thank you

Russell

blueberrypie

What's the interest rate on your mortgage? Are there any charges for early repayment? Is it possible you'll need the money in the future? Can you withdraw overpayments on your mortgage?

Just noticed your signature. If you've credit card debt, that's almost certainly the first thing you should be hitting.

Simon11

Keep enough savings for emergency's ie a few months work income.

Then aim to pay back the highest APR debt, going to lowest, then Mortgage.

There's plenty of forums about paying back debt, mortgage before saving lots of money, have a look

russppt

Hi Blueberry
Thanks for taking the time out to reply.
Mt mortgage rate is 5.9% fixed for another 2.5 years interest only. I have been trying to make capital repayments when I can, usually a minimum of £500.
I try to use my money rather than leaving it hanging around as at the moment interest rates are so poor, so I figure paying off my mortgage is a sound investment with spare cash.

russppt

Hi Simon
Thanks for your reply. Sound advice, as I am self employed so I should focus on having a few months income tucked away just in case and i suppose a cash isa would be the most efficient and effective way of doing that.
The CC debt is interest free at the moment with the balance to be paid off in the next few months..phew..that will be a nice feeling!
Thanks again.
Russell