ISA rate cut, what to do?

kuratowski

SonOfPearl said:

If that is the 1 Year Triple Access Online ISA then I think the rate is being reduced from 1% to 0.4% as per the original MSE news story. 

There are several accounts with almost identical names.  According to Nationwide's own press release, the triple access account that's still on sale remains at 1%. Just as well, if they want keep any customers at all, judging by these boards

In terms of the Society’s on-sale accounts, Triple Access Online Saver and ISA will continue to offer a competitive rate of 1.00%. 

This is from https://www.nationwide.co.uk/about/media-centre-and-specialist-areas/media-centre/press-releases/archive/2020/04/nationwide-announces-changes-to-savings-and-current-account-rates

masonic

DiggerUK said:

Ljc80_2 said:

DiggerUK said:

@Ljc80-2, 
it seems you like to seek advice, but not to take a decision. I have returned to your thread from 2017, to which I entered my words of wisdom.

Clearing the mortgage was a sound recommendation in 2017, it's even wiser advice now..._

...........Can i ask why you would clear the mortgage when more can be earned through interest in a safe, no risk ISA?

I would suggest you consider what trumps what. A no risk Cash ISA, with maximum inflation risk devaluing it on a daily basis, or a no risk roof over your head called a home that's paid for.

At these interest rates you are in a lose, lose, situation against inflation. How can you lose on a house that's paid for. 

Make a decision, you are doing exactly the same now as you were two and a half years ago, and going nowhere fast. Your call however..._

Inflation will devalue the debt and cash on an equal basis, so the net effect will be zero. While the difference in interest rates will dictate whether money will be made or lost by stoozing.

colsten

Ljc80_2 said:._

Can i ask why you would clear the mortgage when more can be earned through interest in a safe, no risk ISA?

What's the interest rate on your mortgage?

masonic

colsten said:

Ljc80_2 said:._

Can i ask why you would clear the mortgage when more can be earned through interest in a safe, no risk ISA?

What's the interest rate on your mortgage?

According to the OP, mortgage rate is 1.25%.

reefer37

would pay off the mortgage to be happy with that no mortgage. would then use the remaining money to put into whatever isa i found was best.
always pay off debt but leave yourself with enough money if you need it. 
also if you move like you said you might less hassle of transferring mortgage with you to your new home etc and if you need a new mortgage can compare all the market

grumiofoundation

DiggerUK said:

Ljc80_2 said:

DiggerUK said:

@Ljc80-2, 
it seems you like to seek advice, but not to take a decision. I have returned to your thread from 2017, to which I entered my words of wisdom.

Clearing the mortgage was a sound recommendation in 2017, it's even wiser advice now..._

...........Can i ask why you would clear the mortgage when more can be earned through interest in a safe, no risk ISA?

I would suggest you consider what trumps what. A no risk Cash ISA, with maximum inflation risk devaluing it on a daily basis, or a no risk roof over your head called a home that's paid for.

At these interest rates you are in a lose, lose, situation against inflation. How can you lose on a house that's paid for. 

Make a decision, you are doing exactly the same now as you were two and a half years ago, and going nowhere fast. Your call however..._

I think you need to do some research into how inflation works and how one is affected by by house price rises.
For very day your cash isa is devalued by inflation your debt decreased by the same amount. 

You clearly believe overpaying a mortgage is always the best financial decision. However this is not always the case and a period of economic uncertainty is a time when overpaying a mortgage is likely to be unnecessarily risky for realistically a small reward in the short term.

You do not inherently "gain" anything by paying off a mortgage versus holding the same amount of money in cash. The gain/loss will be determined by the difference in rate of savings/mortgage. So get the same reward from rises in house price value whether you have a mortgage or not. However you also have to consider the advantage and security provided by cold hard cash rather than it being tied up in a property. Bizarrely you seem to not see this as an advantage? 


You also clearly have a very inflated sense of your own wisdom.