Need to raise cash - should I use ISA money or remortgage?

fluffpot

Hi

I need to raise £20K for medical treatment. My question is do I take this from my ISA (currently £30K) or should I remortgage - I have a lot of equity in the house.

The dilemma arises because my partner is unemployed and I am 2 years self employed and I don't know whether it's better to have some spare cash in case of other emergencies (eg my work drying up, more medical costs) or not to add to the mortgage repayments which I can cover now, but I don't have masses of spare cash left over after this. I'm also not sure if we can remortgage given our employment situation?

If I used the ISA money, I guess I'd then have about £15K left.

Can anyone make any suggestions?
Thanks
Fluffpot

PS I'm posting this also on the mortgage board as I think it is relevant there.

minimike2

How much interest do you earn on the ISA vs How much it will cost you in interest and fees on a mortgage.

I suspect it would not be cost effective to remortgage for this. £15k is still a nice amount to have as a fall back.

fluffpot

Thanks minimike for the speedy reply.

I had forgotten about fees... I suspect that you're probably right in that case. I suppose I had always assumed my ISA was an 'untouchable' until retirement, but life has other plans for it now!

Fluffpot

minimike2

What sort of ISA is it? If its a cash ISA then you can just withdraw no problem.

If its a maxi then you could have a penalty to withdraw I believe.

Maybe one of the IFAs could confirm this?

fluffpot

it's a cash isa

minimike2

You should be fine to withdraw without penalty in that case, as long as theres no special conditions attatched to it