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Should I use my ISA to pay off part of my mortgage?

I have about £10K in a cash ISA earning not too much in intrest.

I have £60K o/s on my mortgage (3.9% std var rate). Which will be paid off in 3 years.

Any views - should I cash in the ISA and pay of a chunk of the mortgage or leave things as they are?

Cheers
BoaT

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If you are paying of 60k in 3 years thats at least £20k a year, so once the mortgage is paid off you can save that and it is more than the ISA allowances.

    So you need to think beyond the mortgage and the tax staus of the ISA which is a use or loose allowance.

    Keep the ISA and get a better rate on the money
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