dont know what to do for the best with mortgage help.

jamesey

hi ive got a capital and intrest fixed mortgage at 3.99% i owe £52876 and im paying £415 a month for this , im told i can overpay £5385 a year from july to july , if i do this it would take my balance down to £47491 and my monthly payment would drop to £377.88
now ive got a s&s uk index accr isa and its got a surrender value of £11189 i dont know whether i would be best to take the £5385 out of there as it could go down a lot this year with this goverment in or i could leave that and take it out my personal isa ive got £5k or so in there , or i could draw the full £11189 all out bank the remainder and shut the s&s isa as its only made what ive payed in in the 11 years or so im paying £80.60 a month into , what would you do??

CloudCuckooLand

Sounds like unlucky timing...invested before the 2000 crash...followed by a slow recovery, maybe 2006/7 it started looking like progress was being made, to then be hit by the 2007/8 downturn...? http://uk.moneycentral.msn.com/investor/charts/chartdl.aspx?Symbol=%24gb%3aukx&CP=0&PT=11

There's still some way to get back to the pre-recession/crunch peak of the market. How long, or whether it ever will, obviously requires a crystal ball.

My gut feeling is that it should recover further as recession passes further into the memory.

As you have a mixture of investments/savings, I would keep a mixture. 3.99% isn't a bad rate. You don't have to overpay. If the Cash ISA is close to the rate, keep that for emergencies.

If the markets are 20% up in three months, get a quick £3k out? If they are down 20%, I never said I knew what I was talking about..!

jamesey

anyone else?

Thrugelmir

Personally I wouldn't cash in the ISA entirely.

However I would withdraw £5,385 and use it to reduce the mortgage balance.

I would then reinvest the £38 saved by reducing the mortgage payment back into the ISA.

Repeating the exercise next year and so on.

jamesey

that sounds reasonable , i think your right