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Do I pay off Mortgage with ISA money?

TIREDMUMMY_2
TIREDMUMMY_2 Posts: 1 Newbie
in Mortgage-free wannabe
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

Comments

  • A_Frayed_Knot
    A_Frayed_Knot Posts: 3,308 Forumite
    Ninth 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
  • edinburgher
    edinburgher Posts: 14,567 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Good advice.
  • A_Frayed_Knot
    A_Frayed_Knot Posts: 3,308 Forumite
    Ninth 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
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