which is best option?

akh43

I am purchasing a car on friday for cash. What I want to know which is the best option for paying.

The car is £5,450, I have £6,000 in my IF current account which offsets my mortgage or £5,000 in my ISA. Which is the best option?

Any help would be appreciated.

Thanks.

Rafter

All depends on the APR. If the APR on your ISA is higher than that on your mortgage offset then use the offset money. If the APR on the ISA is lower use that.

Alternatively apply for an egg credit card, do a online balance transfer to your current account and then pay no interest for the next 6 months or so. Just remember to pay back the card before the 0% period expires.

R.

lipidicman

Im guessing the card will take too long, so pay from the savings (not the ISA) and then replace the saving when the Egg card comes through. Make sure you pay back the card in time - but meanwhile you can keep the money offset against your mortgage - saving money!

I would try to keep the ISA as you cant get that allowance back. But this only applies if you want to keep it long term and build on it. If you are going to use it soon then you dont need to worrry about this