We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Maximising Savings
Options
Comments
-
I'm pondering whether to buy some shares as there is a dividend allowance too. That feels scary though, so I haven't thought particularly seriously about that.
Also, having re-read your post I had assumed you were suggesting the value of the money you received was about £185k, which isn't actually specified. So please disregard my comment suggesting you wouldn't be earning £8k interest. I guess my point was more about making sure you aren't counting ISA and PB related income.
0 -
You mention that £8K interest would take you into the higher rate tax bracket by about £3K, which means about £45K before the interest.
Just checking - is that £45K your gross salary, or your taxable earnings? What does your P60 say?1 -
Hi All,
Thanks for your help and suggestions as to what to do, it’s really helped me.
One further thought I am contemplating is paying off the mortgage. We have around 29k left on it, current interest rate is 4.99 which is due for renewal next March.Monthly we currently pay £470.The early payment charge is about £350
Would it make sense to pay it off rather than say max out the wife’s Isa allowance for this year? (She is happy with this btw)
Thanks as always for any advice.
Cheers!0 -
Pucky89 said:Hi All,
Thanks for your help and suggestions as to what to do, it’s really helped me.
One further thought I am contemplating is paying off the mortgage. We have around 29k left on it, current interest rate is 4.99 which is due for renewal next March.Monthly we currently pay £470.The early payment charge is about £350
Would it make sense to pay it off rather than say max out the wife’s Isa allowance for this year? (She is happy with this btw)
Thanks as always for any advice.
Cheers!
The important thing to bear in mind when deciding whether to pay off the mortgage is the interest rate. As you say it's 4.99%. It sounds like your Early Repayment Charge is about 1%.
If it's a choice between paying off the mortgage or putting £20k into your wife's Cash ISA then I would go with the Cash ISA. Chip are currently offering 4.99% interest in an easy access account, so the same as your mortgage. With the added benefit that you don't need to pay the Early Repayment Charge.
The downside of an easy access Cash ISA is that the rate is variable, so might (and probably will) go down between now and March 2026.
There isn't a lot in it, either option is good. I wouldn't bother paying off the mortgage early, though your ideas might differ.1 -
Thanks for your reply. I still don’t quite follow the logic. Paying it off will remove the interest I pay and give me £470 a month extra.Is it that with the money I would use to pay it off I could get slightly more back from interest if I put it into an ISA for my wife?0
-
I would be minded to max out the ISA now, on the basis the government have indicated they wish to review ISAs and the Cash ISA limit may be lower in future tax years.1
-
Thanks! That’s certainly an option as well, the lure of mortgage free (if only for a short time until we buy again) seemed appealing but now not sure if it’s worth while.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards