Isa or overpay on mortgage ,

Hi , I have a chunk of money after a recent house sale . I was going to put it in an isa but think it may be better to pay a lot off my partners btl and change what they have left to pay into a repayment mortgage . The mortgage has 11 years  to run and we would be left with £20000 if I  was  to put £30000 . What are peoples views on this please.  

Replies

  • MX5huggyMX5huggy Forumite
    6.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    You don’t give enough information to but I would be putting as much as possible into pension. Here’s why:- https://youtu.be/MWadHLKMgB4
  • bostonerimusbostonerimus Forumite
    5.5K Posts
    Fifth Anniversary 1,000 Posts Name Dropper
    Forumite
    MX5huggy said:
    You don’t give enough information to but I would be putting as much as possible into pension. Here’s why:- https://youtu.be/MWadHLKMgB4
    Yep, not really enough to go on from the OP, but I will say that it doesn't have to be one thing or the other...you can split the money and do both.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • AlbermarleAlbermarle Forumite
    15.5K Posts
    10,000 Posts Fourth Anniversary Name Dropper
    Forumite
    This question gets asked regularly. The answer depends on a few different factors, such as the mortgage interest rate, the time scale involved, your other assets/savings, pension provision, family and employment situation etc.

    Although the usual end answer is to spread the money around. Mortgage overpayment. pension lump sum, savings account, S&S ISA etc 
  • jimjamesjimjames Forumite
    16.5K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    If mortgage rate is below 3% then it wouldnt seem to be a financially good decision to pay off mortgage when you can get that from a cash ISA.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • dunstonhdunstonh Forumite
    112K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    I was going to put it in an isa but think it may be better to pay a lot off my partners btl and change what they have left to pay into a repayment mortgage .
    More commonly, it is asked whether you should pay into the pension or the mortgage rather than an ISA.   Partly as the pension wrapper is more efficient than the ISA wrapper as long as the money is remaining to 58+


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • michno8michno8 Forumite
    39 Posts
    Fourth Anniversary 10 Posts
    Forumite
    Thankyou for your replies.  We have no mortgage on our own home . No debts or credit cards etc . In our 50s . Unfortunately both had to retire from work on Ill health but both have paid full stamp for state benefit when we reach retirement age.   Claim contribution based benefit, which we get by on . Mortgage is an interest only one . 11 years to run and not in any deal so goes with rate . Paying approx £2500 a year interest . 
  • WYSPECIALWYSPECIAL Forumite
    470 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Forumite
    Will your money be safe if you and you partner split up or are you effectively gifting them a large chunk of money?
  • michno8michno8 Forumite
    39 Posts
    Fourth Anniversary 10 Posts
    Forumite
    Nothing in writing , but I trust that they would do the right thing if we split . 
  • FreedomBringsPeaceFreedomBringsPeace Forumite
    94 Posts
    10 Posts Name Dropper
    Forumite
    michno8 said:
    Nothing in writing , but I trust that they would do the right thing if we split . 
    If they are upright and just why not sort this arrangement formally? Verbal agreement leave alot of grey areas
Sign In or Register to comment.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals