We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
pay off or save (i'm new, please help)
busy_b
Posts: 126 Forumite
I’m unsure where I should post this query as I’ve not been on this section before, but here goes:-
We have a Mortgage of £36,000 on a property valued at approx £250,000. (this is our main home and we have no intention of moving as we have just spent £50,000 improving it, this was funded with cash from the sale of our business premises and we now work from home).
The remainder of the sale (£48,000. was placed into a basic easy access account which is only earning approx 4.5% interest)
I would like to know if I should use these savings to pay off my mortgage in full as I have a straight repayment mortgage which will continue to run for approx 12 years and I am paying around £450.00 per month at the moment.)
Every year both my husband and I place the maximum allowance into ISA’s and now have approx £20,000 between us.
Finally, we also have 4 Buy to Let Properties valued at £500,000. with outstanding mortgages of £128,000. (The rents on these only just cover the mortgage payments, as they are Let to family and friends and were purchased as long term investments only).
We operate a small Business and are Basic Rate Tax Payers. I was advised to offset our savings against our mortgage as I like the idea of having the money there if our business was to fail in anyway. However, I am totally confused reading some of the previous posts as to what would be best.
Please help. Thanks.
We have a Mortgage of £36,000 on a property valued at approx £250,000. (this is our main home and we have no intention of moving as we have just spent £50,000 improving it, this was funded with cash from the sale of our business premises and we now work from home).
The remainder of the sale (£48,000. was placed into a basic easy access account which is only earning approx 4.5% interest)
I would like to know if I should use these savings to pay off my mortgage in full as I have a straight repayment mortgage which will continue to run for approx 12 years and I am paying around £450.00 per month at the moment.)
Every year both my husband and I place the maximum allowance into ISA’s and now have approx £20,000 between us.
Finally, we also have 4 Buy to Let Properties valued at £500,000. with outstanding mortgages of £128,000. (The rents on these only just cover the mortgage payments, as they are Let to family and friends and were purchased as long term investments only).
We operate a small Business and are Basic Rate Tax Payers. I was advised to offset our savings against our mortgage as I like the idea of having the money there if our business was to fail in anyway. However, I am totally confused reading some of the previous posts as to what would be best.
Please help. Thanks.
0
Comments
-
If I were you I would open an Intelligent Finance (IF) Offset Mortgage, cos they allow you to offset your ISA against the mortgage (I think Woolwich do too?)... this way you are in effect "paying off" (or rather ofsetting against) the mortgage while keeping your ISA allowance.
So a joint-name offset mortgage with IF, both of you open an ISA with them and transfer ur existing ISA's to IF. Every year transfer your £3000 (£3600 from 2008) from your current account with IF to the ISA's! Job done
(One word of advice, before doing this, have a chat with an IF rep just to CONFIRM that they accept ISA transfers!)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards