isa or mortgage for my £40

snig

About £40 goes into my cash isa a month but I'm thinking it would be better spent overpaying the mortgage. (Although it is an emergency fund when in the isa)
Discuss
Thanks

Kaz2904

Depends on the interest rate of your mortgage and the accessability of any mortgage overpayments as it is your emergency savings money.

ic

I've been regularly overpaying my mortgage, however as rates have increased I've now stopped this.

My mortgage is fixed at 4.68%, but I can now get an ISA at 6.3% - so I'll make more in interest saving tax free in the ISA than I will save in paying off the mortgage faster. I also get the convenience of having easy access to the money should I ever need it, rather than having to ask the mortgage company for some back (which they'll do in "exceptional" circumstances).

When I my fixed rate deal comes to an end, I may pay off a lump sum or continue as I am now, remortgaging on what I owe - depends whats happening at the time with the rates and my own circumstances.