Interest only Mortgage Repayment Vehicle Check over

ciscobloke01

Hi

I have 3 BTL properties all on Interest only mortgages maturing roughly the same time (16 years from now).

So far we have been saving £500pm into a S&S ISA invested into the S&P500 and have accumulated a pot of £65k.  My initial plan was for the next 16years to up this to £750pm and see where that leaves us.

It then occurred to me that my wife & I both have a LISA with £1k currently sitting there not being used.  We are both 45yrs old so could add to our pots for the next 5 years and take advantage of the 25% government top up.

My question is, am I right in thinking that if for the next 5 years we split the £750 putting in the maximum per month into the 2 LISAs £333.33 pm each) and the rest into the above mentioned ISA, and once we reach 50 we put the full £750 into the ISA that this would lend to better returns after 16 years? (Obviously still invested into the S&P500 so like for like potential for growth)

I've tried to run some numbers on the assuming of a conservative average return of 3% and to me using the LISAs would return the most but someone with financial knowledge might be able to sanity check my theory and give me peace of mind.

Cheers in advance

eskbanker

Duplicate thread answered on ISA board:

https://forums.moneysavingexpert.com/discussion/6559214/thoughts-on-my-mortgage-repayment-vehicle-using-s-s-isa-and-or-lisas

EthicsGradient

Yes, it makes sense to take advantage of the top-up from the government - assuming charges are the same, of course.