Re: Pay lump sum mortgage?

Reaper

Do you mean cash-ISAs? The best ISAs (eg Abbey postal ISA) pay just over 5%, so if you have one of those you are better off leaving it in your account to grow. As your mortgage shrinks and your ISAs grow you will reach the point where they match and you can use them to pay off the rest if the mortgage in one go.

If your ISAs are earning less interest than you are paying then use them now, or switch them to a better ISA.

If they are stock and shares ISAs then the calculation is harder. It depends whether you think they will grow faster than 5%. Looking long term they normally would, but of course they could fall too. Since I can't predict the market and don't know your feelings about risk that is a decision you have to make.

meishka

thanks for that, I was thinking maybe along those lines as well though the monies are in the nationwide and only pay 4.85 so not quite hit the 5% yet! think i will leave it there at the mo ........... thanks again for your reply