Interest Only

dosh1

Hi,

Can you help please?

I have an interest only mortgage at 1.79% a month over 15 years. The mortgage payments are such that I have been able to put additional money away in ISAs and high interest accounts with a view to being able to pay off at the end of the term.

I have a fair some of money in various accounts but now I am thinking might it be best to pay off a lump sum of the mortgage with it.

The reason for saving in ISAs was such that I hoped the interest paid to me would be more than the interest I am paying on the mortgage.

Some accounts I have are paying 6% (not tax free) or 2.75 (tax free).

The mortgage is fixed rate for two years so is it better to pay off as much of the mortgage as I can either monthly to the yearly maximum or pay in between renewing the mortgage? Or perhaps it is better to stick with accounts paying me a better rate and then pay it off at the end?

Any views or thoughts would be appreciated

silvercar

Assume you mean 1.79% a year, but you pay monthly?