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Offset Mortgage or ISA
ISASwitcher
Posts: 5 Forumite
I am wondering whether to keep my money in my Cash ISA or take it all out and use it to offset my mortgage. I have an offset mortgage with a fixed rate of 4% and outstanding balance of around £66,000. I have around £17,000 in my ISA. My thinking is that the ISA will offer a lower return that the effective 4% I would get by offsetting (which is also tax free). Also, given that the ISA allowance is now over £15K pa I can always put the bulk of my money back in a new ISA should I wish. I have not paid into an ISA in this tax year (15/16). Is my logic sound or am I missing something? All thoughts gratefully received. Thanks.
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