should we move to an ofset

linux_geek

At the moment we been overpaying our mortgage and managed to reduce it down from 100k to 60k over 5 years

this past year we have been overpaying £600 per month as on the Halifax standard rate

we did a savings review today and between us we have over 60K in ISAs

If we move to an offset the 60K would loose the ISA wrapper so trying to figure out if in our situation we would be better off with an offset or carry on with the over

I know we could just pay it off but due to as we have heath worries and may need the money as a safety net in the future

HappyMJ

The ISA wrapper is generally the same as an offset..i.e exempt from paying tax on the interest earnt. I'd leave it as it is continuing to pay as much as possible into the ISA and the remainder into the mortgage.

linux_geek

thanks

that was my thinking only reason I thought an offset my be better is the small difference between the interest rates of the ISAs and the mortgage

jimmyjones_2

You could check out the woolwich offset which allows you to offset ISA balances. It would potentially save a bit of interest and retain your ISA allowance.