Transfer / Sell ? ISA Halifax Growth B to money supermarket.

jawa1

6 Years ago I got a I/O mortgage with the Halifax and a PEP / ISA tax free home plan with critical illness cover and eventually pay off the mortgage.

I have recently changed my mortgage to be full repayment and keeping the ISA tax free home plan.

I have been paying £50 a month into the Halifax ISA tax free home plan which goes into the Halifax Growth B fund. I currently have about 12,822 units in the Halifax Growth B but would like to invest it other funds maybe as well as keeping in the Halifax Growth B.

As Halifax only offer there own products I believe I need to transfer my ISA via an IFA which has access to a wide range of funds via fund supermarket?

Q. If I transfer the ISA will I have to Sell the shares in the Halifax Growth B fund and then if I wanted buy them back?

I believe Halifax Growth B fund share price has an 8% Sell / Buy price so I would louse out by a fair amount?

e.g
Today’s price is 0.3984 so if I transferred my ISA would it be transferred at 0.3665 (today’s price less 8%)

How will the above affect my critical illness cover.

dunstonh

You cannot buy Halifax funds via a funds supermarket. Therefore it is not possible to re-register your unit trust ISA with a funds supermarket. Therefore it would need to be transferred and new funds selected.

You have already paid the bid/offer spread so that shouldnt be an issue. The only concerns would be if there is an admin exit charge (I dont think halifax have one but its worth checking. Often a fixed amount around £30). Plus you will be out of the market for upto 3 days. Any movement in those three days would not apply.

The application to set up the funds supermarket contains all the details and signatures required to transfer so you need not do anything else.