Repay mortgage with isa

Allybongo1

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

edinburgher

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

vacheron

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.

Allybongo1

Thank you both for your info, very much appreciated........x����