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IF offset with ISA - overpay or ISA?
BARGAINHUNTER!
Posts: 848 Forumite
Hi
I am about to start a new mortgage with Intelligent Finance. I have opted for an offset and I will start an IF ISA as well, which I can also offset against my mortgage. My plan is to pay my mortgage off as quickly as possible. Is the best way of doing this to make overpayments directly into my mortgage account or my ISA? Or does it make no difference as the ISA is offset against my mortgage? Sorry to sound so dense, but I just can't get my head round this!
I am about to start a new mortgage with Intelligent Finance. I have opted for an offset and I will start an IF ISA as well, which I can also offset against my mortgage. My plan is to pay my mortgage off as quickly as possible. Is the best way of doing this to make overpayments directly into my mortgage account or my ISA? Or does it make no difference as the ISA is offset against my mortgage? Sorry to sound so dense, but I just can't get my head round this!
MFW 2011 challenge - Aim: Overpay £414.26 a month/£5,000 a year. Overpayment Total to date: £414.26:jMortgage start 28/9/07 £46,217.00 :TMortgage balance as of 25/05/11 £24,490.58 :T
Interest saved as of 25/05/11: £2,849.84 Projected term reduction as of 25/05/11: 9 years 11 months
Interest saved as of 25/05/11: £2,849.84 Projected term reduction as of 25/05/11: 9 years 11 months
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Comments
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Makes no odds as is offset as you only pay interest on balance outstanding.
But best to put money to ISA, as its a use or lose allowance. Which is a good tax free allowance for the futureA shadowy flight into the dangerous world of a man who does not exist.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.0 -
Thanks. That was what I thought but I just thought I would check in case I was missing something! Im going to max out the ISA each year and any extra will go direct to the mortgage.MFW 2011 challenge - Aim: Overpay £414.26 a month/£5,000 a year. Overpayment Total to date: £414.26:jMortgage start 28/9/07 £46,217.00 :TMortgage balance as of 25/05/11 £24,490.58 :T
Interest saved as of 25/05/11: £2,849.84 Projected term reduction as of 25/05/11: 9 years 11 months0
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