Extend mortgage to fill ISAs?

chockydavid1983

Damn, that'd count me out then :-)

Alexland

Well I was curious so just went all the way through the Zopa process via TopCashBack and they didn't ask me the reason and the £10k will be in our account within 3 days. It's my first personal loan but they still gave me the best rate of 2.9% (0.8% service rate and 2.1% lender rate) and I spread the minimum payment over several years but plan to repay early with no penalty within the next 6 months. I will keep the money in my wife's ISA as cash and invest it as the loan is repaid. £40 to keep my ISA options open isn't bad but I will need to borrow more towards the end of the next tax year...

Alexland

£10k just arrived from ZOPA - no questions asked!

Goodness knows what having them as a lender is doing to my credit file but nevermind. I really wasn't expecting to secure the lending so quickly so it will sit in our 123 earning interest for a few weeks (to offset the £40 cost) before going into the ISA and getting invested as the loan is repaid.

Would be tempted to use them again next tax year for a larger loan if they doesn't ask questions...

Alex

Audaxer

Alexland wrote: »

£10k just arrived from ZOPA - no questions asked!

Goodness knows what having them as a lender is doing to my credit file but nevermind. I really wasn't expecting to secure the lending so quickly so it will sit in our 123 earning interest for a few weeks (to offset the £40 cost) before going into the ISA and getting invested as the loan is repaid.

Would be tempted to use them again next tax year for a larger loan if they doesn't ask questions...

Alex

Just wondering, why couldn't you have funded the ISA by 'borrowing' the £10k from the 10% cash in your portfolio, and then build the cash holding back up to 10% over the next 6 months, instead of repaying a loan?

Alexland

Because the portfolio cash is in ISA and pension wrappers already and theres no point raiding the easy access 5% regular savers or new Joint Flex Direct when Zopla are lending at 2.9pc.

Alexland

Alexland wrote: »

I just did a credit check with Zopa with reason 'Other' and they just offered to lend me £10k at 2.9% which if early repaid within 6 months would be around £85 interest with £45 cashback so a net cost of £40.

With a bit of belt tightening for the remainder of the tax year that should just about allow us to use our full ISA allowances.

Woo just finished repaying the £10k Zopa loan used to fill last year's ISAs. In the end we also borrowed another £1k in my wife's name (paid back very quickly) to get 2x £50 of introduce a friend bonuses so the overall Zopa loan experience had negative cost to us.

So far this tax year we have done my son's Junior ISA, a few P2P introductory savings offers, Moola GIAs and the regular BG children's saving plan but very little in adult ISA contributions. So it's now a challenge of finding nearly £40k in the next 8 months which doesn't look possible so I can see us needing another, probably bigger, end of tax year loan from somewhere...

Alex