Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • StockportGerbil
    • By StockportGerbil 10th Nov 04, 11:43 PM
    • 543Posts
    • 106Thanks
    StockportGerbil
    Stocks & Shares ISA vs the mortgage
    • #1
    • 10th Nov 04, 11:43 PM
    Stocks & Shares ISA vs the mortgage 10th Nov 04 at 11:43 PM
    Folks :-
    I've acquired a couple of stocks & shares ISAs and a mortgage. Half the mortgage is repayment and the other half is interest only with the expectation / hope that in 11 years time the ISAs will have enough in them to pay off the remains of the mortgage.

    In these days of relatively high interest rates and less than sparkling stock market performance is it more sensible to cash the things in and stick all the money in the mortgage?

    If sticking with ISAs is a good idea, how do I determine the performance of these things against similar products? The literature and web site of one of the providers (Windsor Life) is hopeless. The other one is run by Henderson / NPI / AMP / probably something else today and there is some info on the web site, but I'm struggling to make sense of it or even find my product!

    Thanks

    Kev
Page 1
    • MarkyMarkD
    • By MarkyMarkD 11th Nov 04, 1:28 AM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    • #2
    • 11th Nov 04, 1:28 AM
    Re: Stocks & Shares ISA vs the mortgage
    • #2
    • 11th Nov 04, 1:28 AM
    In these days of relatively high interest rates
    Eh? Mortgage rates haven't been this low for years.
    • StockportGerbil
    • By StockportGerbil 11th Nov 04, 1:50 AM
    • 543 Posts
    • 106 Thanks
    StockportGerbil
    • #3
    • 11th Nov 04, 1:50 AM
    Re: Stocks & Shares ISA vs the mortgage
    • #3
    • 11th Nov 04, 1:50 AM
    OK - compared with 15 years ago the rates are low, but I think I've received 3 letters this year from the mortgage company saying they've upped the mortgage rate....
    • dunstonh
    • By dunstonh 11th Nov 04, 11:45 AM
    • 98,597 Posts
    • 67,053 Thanks
    dunstonh
    • #4
    • 11th Nov 04, 11:45 AM
    Re: Stocks & Shares ISA vs the mortgage
    • #4
    • 11th Nov 04, 11:45 AM
    The rates are generally considered to have topped out now and the long term view is that they will decrease.

    No-one has a crystal ball as to what is going to happen in the future.

    My personal view is that now is a very good time to be buying equities (in a wide spread of areas and not just one fund). Any time after a stockmarket crash has historically been a good time to buy and not sell.

    It's all down to risk, timescale and personal opinion. Also, saying you have an ISA isnt very helpful as there are thousand of funds out there ranging from zero risk funds, low risk corporate bond, fixed interest funds through medium risk managed funds upto high risk specialist and overseas funds.

    You could be investing in low risk corporate bond funds for all we know which tend to average 4-7% a year and getting less than the mortgage. Or you could be in the top performing stockmarket funds earning 14-20% a year.

    • Reaper
    • By Reaper 11th Nov 04, 12:33 PM
    • 6,707 Posts
    • 5,065 Thanks
    Reaper
    • #5
    • 11th Nov 04, 12:33 PM
    Re: Stocks & Shares ISA vs the mortgage
    • #5
    • 11th Nov 04, 12:33 PM
    In these days of relatively high interest rates and less than sparkling stock market performance is it more sensible to cash the things in and stick all the money in the mortgage?
    As already said interest rates are not high. Although everyone says "5 rate rises" they were all only 0.25% and started from rock bottom. As for selling up - I did just that a few months ago. The market seemed to be going nowhere and I was concerned by oil prices heading to permanent new highs so I mostly sold up and put the money in my offset account - a useful device as I can always get it back again and reinvest. With hindsight I think I was wrong to worry. While I haven't reinvested if I were considering selling up now I think I'd hold off at least until Christmas. Of course nobody really knows, we can just give opinions.

    If sticking with ISAs is a good idea, how do I determine the performance of these things against similar products?
    There are excellent free graphs available at Money Extra. You might need to register (free) to make full use of them. You can look at the performance of your shares or funds over whatever period you want and compare them to other shares/funds or market indexes. You can also set up a portfolio - enter your funds and then you get instant valuations whenever you want and you can link through to the graphs. I believe there are other sites that do this too but as Money Extra does everything I want I have never felt the need to look.
  • deemy2004
    • #6
    • 11th Nov 04, 8:39 PM
    Re: Stocks & Shares ISA vs the mortgage
    • #6
    • 11th Nov 04, 8:39 PM
    OK - compared with 15 years ago the rates are low, but I think I've received 3 letters this year from the mortgage company saying they've upped the mortgage rate.... !
    Rates are still near historic lows, don't be fooled into a false sense of security 4.75% is not high, especially when rates are rising all aroudn the world

  • Robert_Sterling
    • #7
    • 11th Nov 04, 11:09 PM
    Re: Stocks & Shares ISA vs the mortgage
    • #7
    • 11th Nov 04, 11:09 PM
    In 1980 if you borrowed 30,000 from the Halifax the mortgage rate was 17% i.e. SVR +2% extra for borrowing more than 20,000.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

41Posts Today

2,906Users online

Martin's Twitter