Do I pay off Mortgage with ISA money?

Hi. I currently owe £30k on a mortgage on a 2.29% tracker. There are only 4 years left on it. I am wondering whether to pay off half of it with money saved in a ISA that is only earning 1.6%. If anyone has any thoughts on this I would appreciate it, or if there has been a similar thread that you could point me in the direction of? Thanks

Replies

  • A_Frayed_KnotA_Frayed_Knot Forumite
    3.2K Posts
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    If I had £15,000 savings in an isa and £30,000 mortgage. Then no, I would have to keep some savings, say maybe half and pay the other half to the mortgage.

    If I had other savings elsewhere and felt comfortable enough, then I would pay the £15,000 to the mortgage.


    Hope this helps.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • edinburgheredinburgher Forumite
    12.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Good advice.
  • A_Frayed_KnotA_Frayed_Knot Forumite
    3.2K Posts
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Ooops, forgot to mention, check you do not have to pay a penalty for paying over the normal 10% allowed each year on your mortgage.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
This discussion has been closed.
Latest MSE News and Guides

Alexa, tell me some top tips

How can this Forumite maximise their smart speaker?

Join the Forum discussion

State pension shortfalls for women

MPs call it a 'shameful shambles'

MSE News