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Repay mortgage with isa

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
3 replies 861 views
Allybongo1Allybongo1 Forumite
2 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Advice needed!!! I want to close my isa's to pay off my mortgage but worried if I close my isa's before the 5th April I will have to pay tax on them. Also could I avoid the tax by paying them straight to my mortgage account rather than my current account and then transfer to mortgage account? Any advise much appreciated :)

Replies

  • edinburgheredinburgher Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    ISAs are always tax free, so no tax issue if you want to close them early.

    As regards interest etc., You'd need to check the T&Cs to see when interest is paid and what (if anything) you lose
  • vacheronvacheron Forumite
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    Tenth Anniversary 1,000 Posts Photogenic Mortgage-free Glee!
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    Don't worry. You'll never pay tax on money or shares held in ISAs no matter when you withdraw the money. Though if you are in a fixed term ISA and you withdraw before the term is due there may be penalties deducted from any interest you may have earned.

    Note that Fixed term ISAs are measured from the date you opened them, not the financial year.
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
  • Thank you both for your info, very much appreciated........x����
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