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Offset mortgage and an ISA

PParka
PParka Posts: 270 Forumite
Part of the Furniture 100 Posts Name Dropper Academoney Grad
in Mortgages & endowments
Hi,

I tried the ISA forum and didn't get any answers, so thought I'd try the mortgage experts!! Anyway:

I've just opened a Tax Beater ISA with Barclays. I've also got an offset mortgage with Barclays as well.

My mortgage rate is 6.2% and the ISA rate is 6.5%

Currently the ISA has £3k in it and is not offset against the mortgage.

Am I right in thinking this is the best option while the the ISA rate is higher than the mortgage rate?

If the ISA rate drops (or the mortgage rate goes up) am I better off making part of the offset arrangement??

I think my thinking is right, but just want to make sure

Thanks
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