Mortgage Dilema

vixter68

I would like to buy a house for £87,000, I already have a £38,000 deposit but I also have around £40,000 in ISA's. How much mortgage would you advise to borrow, as the interest on my ISA's is only 2.65%, where as my mortgage is being charged at 3.75%.. Obviously I am paying more for my mortgage than the return on my interest from my ISA. The only thing is my ISA has taken years to save for :money:and it is my savings? What would you advise?

creditcard123

Hi
Have you thought off an offset mortgage where you could move your £40000 from your ISA and put it into a savings accounts linked to your mortgage. Your savings are then working for you in reducing your capital from your mortgage as your mortgage repayments would be based on full amount of mortgage of £49000 but you would only be paying interest on £9000 on mortgage.
Sorry I am not very good at explaining this but the way I think it works is you pay off your mortgage sooner with less interest paid

waveneygnome

Is your proposed new mortgage provider The One Account?

Please let us know who/what your proposed deal is.

WG