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Lump sum repayment advice for mathmaticians
sat56
Posts: 40 Forumite
Hi
Currently have morgage of £16000 at fixed rate of 4.29%. Remaining term approx 8 years.
Morgage has erc of 2% which expires nov.
Already used my free repayment allowance.
I also have an ISA paying 2.75 % of £10700.
My question is, is it worth using the ISA to make a lump sum off my morgage. Ive tried to do the maths but am just confusing myself.
The morgage is not going to run the term, will be paid off in next couple of years. Also I have other savings in Isas and other accounts as my backup.
Thanks for any advice
Currently have morgage of £16000 at fixed rate of 4.29%. Remaining term approx 8 years.
Morgage has erc of 2% which expires nov.
Already used my free repayment allowance.
I also have an ISA paying 2.75 % of £10700.
My question is, is it worth using the ISA to make a lump sum off my morgage. Ive tried to do the maths but am just confusing myself.
The morgage is not going to run the term, will be paid off in next couple of years. Also I have other savings in Isas and other accounts as my backup.
Thanks for any advice
0
Comments
-
No.
4.29 - 2.75 = 1.54%
so the 2% ERC would need to be roughly 1 year and 4 months in the future to break even.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0
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