Do I pay off Mortgage with ISA money? 7 August 2015 at 9:19PM in Mortgage-Free Wannabe 3 replies 707 views

TIREDMUMMY_2

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

A_Frayed_Knot

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.

edinburgher

Good advice.

A_Frayed_Knot

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.