Old Peps New Isas

psychosomatic_gardener

we are just going through a remortgage after being on a prudentional gold pep for 7 years its worth poop we have sent letters back to freeze them my wife and me have one each whats the best to put them in ie transfer we put £41.00 between us we want to put them in some thing to repay a £20.000 intrest mortgage,are cash isas best as we will be over paying on top of the repayment part

dunstonh

It is not the PEP that is worth poop. It is the fund that you have invested in. The pep and the fund are two different things.

You should actually be quite pleased that it has gone down as the units you had been buying monthly since the crash would have been a lot cheaper. When paying monthly and having a target figure in mind, its great to have a stockmarket crash near the start as that historically benefits you over the long term.

Cash ISAs are not better or no worse than a PEP. I certainly wouldnt recommend a CASH ISA to support a mortgage repayment. You would be better off on capital and repayment mortgage rather than that.

You could consider transferring your PEP to another provider, such as one of the fund supermarkets (see ISAs section for regular posts on those). These offer hundreds of funds from mulitple fund managers covering all risk ratings. Perhaps you should choose a fund that is closer to your attitude to risk. Ideally, choose a couple of funds to spread the risk round.