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Mortgage Overpayment against ISA saving

paultunn
paultunn Posts: 2 Newbie
in Mortgage-free wannabe
Can anyone offer advise as to wether I am better putting £200.00 per month as an overpayment towards my mortgage or saving this in an ISA. Appreciate any advise

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what are the aers/aprs?
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    If the AER for the ISA is higher than the mortgage APR, then save in the ISA, and vice-versa.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • paultunn
    paultunn Posts: 2 Newbie
    CLAPTON wrote: »
    what are the aers/aprs?
    We curently pay 0.75% above bank of england rate. The ISA is a standard ISA.
  • JonnyBravo
    JonnyBravo Posts: 4,103 Forumite
    Mortgage-free Glee!
    paultunn wrote: »
    We curently pay 0.75% above bank of england rate. The ISA is a standard ISA.

    A standard ISA? :rolleyes: (sigh)

    What's the rate you get?
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    paultunn wrote: »
    The ISA is a standard ISA.
    :confused::confused::confused:
    Duuuh - There is no such thing!
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • ailuro2
    ailuro2 Posts: 7,540 Forumite
    Part of the Furniture Combo Breaker
    By standard ISA do you mean a cash mini ISA?

    The interest rate on your ISA, is what people need to know to compare it to your mortgage interest rate, which will be 5.75 at the moment.

    Whichever rate is higher, that is where your money belongs.;)

    (pls don't be mean to the newbie, ppl, we were all new once!!)
    Member of the first Mortgage Free in 3 challenge, no.19
    Balance 19th April '07 = minus £27,640
    Balance 1st November '09 = mortgage paid off with £1903 left over. Title deeds are now ours.
  • kje_2
    kje_2 Posts: 82 Forumite
    In pure money saving terms you should look at the interest rates that you pay for your mortgage and receive from your ISA. However, are you likely to be tempted to dip into your ISA savings ? I overpay on my mortgage as I know that the money is gone and I can't withdraw it and spend it.
  • JonnyBravo
    JonnyBravo Posts: 4,103 Forumite
    Mortgage-free Glee!
    ailuro2 wrote: »
    (pls don't be mean to the newbie, ppl, we were all new once!!)

    I hardly think anything that has been said qualifies as "mean".

    If people want advice then they should read the advice posted. Jonbvn was quite clear with his advice.
This discussion has been closed.
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