Cashing in a Maxi ISA to pay off part of mortgage

dleafe

Does anyone know if there are any tax implications if I cash in a Maxi ISA to pay off part of my mortgage?

The maxi ISA is an NDF Homemaker plan that has been running for 12 years and is currently worth £23000.

HammersFan

I have just done the same, and I don't think there are since if it is a Maxi ISA it is shielded from all types of tax. I guess the only thing is that some ISAs are now at a higher rate than the mortgage interest rate, so that might be worth taking into account.

dleafe

thank you for your reply.
It is a stocks and shares ISA, and although is performing OK at the moment, in the past it has faired badly. I want to be able to raise cash to pay off a lump sum, and this seems like a good way to do it, and gives me the opportunity to save the premiums elsewhere or overpay the mortgage too.

HammersFan

Yes, I agree, rolling the premiums straight into overpayments makes a big difference. As does seeing the daily interest bill come down (I get this figure from my lender every couple of months - its is a real motivator when the going gets rough, and a real eye-opener to see how much I have been shelling out to the building society!). Good luck with hitting the target you have set, I hope to not be too far behind.