Best way to pay off motgage

eddiemacthedog

have a mortgage at the moment of about 68k, currently overpaying and pay £1500 a month of at a time at a rate of 2.35%, its a INGdirect lifetime tracker.

I also have a cash isa which is 2.75 gross% with the bank of scotland, would i be better paying some into this as well to take it up to the limit or just stick with paying it all into the mortgage?

any help appreciated.:j

Lois_E

With those rates I'd fill the ISA and then chuck the rest of the money into the mortgage.

Jonbvn

OP,

Fill up your ISA first, then pay down your mortgage.

Keep track of your ISA interest rate. If it drops below your mortgage rate, then pay down your mtg first.

jackieblack

Jonbvn wrote: »

Fill up your ISA first, then pay down your mortgage.

Keep track of your ISA interest rate. If it drops below your mortgage rate, then pay down your mtg first.

Yep, this ^^^^^^

eddiemacthedog

Thanks guys and girls

lulabelle1

I'd personally just pay it all off the mortgage, but it depends what your goal is and how you are with your money....

I'm pretty useless - if I see that I have built up a decent amount in savings/ISA's I find it too tempting and end up spending some. So, for me it's best to chuck it at the mortgage.

The rates between your ISA and mortgage aren't that different, so you wont make much on interest by putting it in to the ISA instead of the mortgage....