undecided what to do

haras_nosirrah

Hi All

I have a btl mortgage which was a 5 year rate - fixed at 6.29% (ouch) with bank of ireland (2 years left on fix)

I can overpay nearly 10,500 before march 31st with the product I have

I have £10,000 in an isa currently earning 3% but next year rates look dire so am wondering whether I would be better putting it into the mortgage. I have £10,000 available in an overpayment pot in my Nationwide mortgage (that I can't get back but can underpay to the value of it) so would not be leaving myself with nothing if things get dire as could not pay my mortgage for quite a long time if things went wrong.

I am a lower rate tax payer and usually make a loss on my rental business once expenses are taken into account (will be about a £600 loss this year)

What would you do? Am torn

mrcow

Well why did you set up the ISA in the first place? Was it to save for something specific? Or nothing particular? If the latter, I'd be inclined to put it towards the btl - but only if it's going to be part of an ongoing repayment plan that's going to make a real difference.

If it's just a one off £10k, I'd rather keep it and use it for something I really wanted to spend it on.

haras_nosirrah

Thanks for replying

It was originally to cover my maternity leave if going back to work hadn't worked out (which it has)