How to withdraw money from ISA to overpay mortgage?

coffee_king

Hi there
I have some money sitting in an ISA from last last year (That hasnt been paid into this year) that I would like to use to make an over payment on my mortgage. How can I do this while still being able to save my full amount in this years ISA?

Thanks

Devon_Sailor

Just close and withdraw it, and open up a completely new ISA for this year's allowance, surely?

DS

coffee_king

But doesnt withdrawing money from an ISA mean that you cant then pay that money back into an ISA?

evenasus

You're allowed to open and fund an ISA each year.

Any

coffee_king wrote: »

But doesnt withdrawing money from an ISA mean that you cant then pay that money back into an ISA?

That is being said because you only have 1 allowance each year!!
So if you withdraw your past 10 years ISA worth £40k you cannot pay it back into an ISA because your annual limit to pay into an ISA is much less then that.
That has absolutely nothing to do do with you cancelling OLD ISA and paying off a mortgage.
You said you haven't paid this year's allowance into that ISA.

coffee_king

Any wrote: »

That is being said because you only have 1 allowance each year!!
So if you withdraw your past 10 years ISA worth £40k you cannot pay it back into an ISA because your annual limit to pay into an ISA is much less then that.
That has absolutely nothing to do do with you cancelling OLD ISA and paying off a mortgage.
You said you haven't paid this year's allowance into that ISA.

So just to confirm with your example I can withdraw £40K from a previous ISA, pay it into my mortgage account and I'm still able to save £5,760 in a new ISA cash account this year?

evenasus

When it's said that you can't replace that money - it means exactly that.

If you withdraw all last years ISA funds, that year's allowance is gone forever.

I have paid in the full allowance every year since ISAs started and Tessa before that.
So I have 23 years worth, without drawing any out.

If I'd withdrawn one years allowance, then I would only have 22 years worth of ISAs.

evenasus

coffee_king wrote: »

So just to confirm with your example I can withdraw £40K from a previous ISA, pay it into my mortgage account and I'm still able to save £5,760 in a new ISA cash account this year?

That is correct.