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Mortgage repayment mess
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StockportGerbil
Posts: 567 Forumite
Folks :-
The situation I've now found myself in is that I have an offset mortgage for £65000 with FirstDirect with an unexciting variable interest rate. I got here via a pension mortgage, then PEPs and ISAs being used to repay the mortgage, until I moved house and got fed up / cold feet over these funny repayment vehicles. So 40000 in theory is being paid on a repayment basis and the rest will be paid off in 13 years by the remains of the PEPs and ISAs. (Cough!)
Those PEPs and ISAs seem to be doing nothing much and in these days of rising interest rates I'm tempted to cash them in, put the proceeds into the mortgage and what I'm paying into the ISAs chuck into the Mortgage.
Is this sensible or is there a better way?
Thanks!
Kev
The situation I've now found myself in is that I have an offset mortgage for £65000 with FirstDirect with an unexciting variable interest rate. I got here via a pension mortgage, then PEPs and ISAs being used to repay the mortgage, until I moved house and got fed up / cold feet over these funny repayment vehicles. So 40000 in theory is being paid on a repayment basis and the rest will be paid off in 13 years by the remains of the PEPs and ISAs. (Cough!)
Those PEPs and ISAs seem to be doing nothing much and in these days of rising interest rates I'm tempted to cash them in, put the proceeds into the mortgage and what I'm paying into the ISAs chuck into the Mortgage.
Is this sensible or is there a better way?
Thanks!
Kev
0
Comments
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I'd be tempted to do the same, but it really depends on your entire financial situation and your attitude to risk, etc. Repayment is safer, but PEPs & ISAs have the potential to earn more and leave you more than enough money to pay off the mortgage. They also have the potential to earn less and have a shortfall.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0
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