mortgage help

moon man · 24 Apr 2007 at 20:41

ok im wanting to pay off my mortgage in 3 to 4 years , i owe 38k (bought in 2001 b4 the boom

and have a lump sum of about 13k (redundancy) to pay some off the mortgage then an overpayment of £500 a month should do the trick. OR would it be better to use isas (12k is already in isas but i cant invest any more this year) and let that build up in a seperate account or a mixture of both. btw my mortgage is 5.3% with no payback fees

moid · 24 Apr 2007 at 20:43

Depends if you can beat 5.3% after tax on your savings.

ISA alone wont cut it (3k max a year) so you will need an alternative investment - in a fund perhaps? See an IFA - they can advise you better.

moon man · 24 Apr 2007 at 20:44

moid said:
Depends if you can beat 5.3% after tax on your savings.

ISA alone wont cut it (3k max a year) so you will need an alternative investment - in a fund perhaps? See an IFA - they can advise you better.

use my partners isa as well so 6k

Indy500 · 24 Apr 2007 at 20:44

No early repayment fees and a 38k left on mortgage? Lucky you...perhaps you should take the opportunity to just pay most of it off now, then you won't have as much interest being paid on it.

Glaucus · 24 Apr 2007 at 20:45

I think you'll be hard pushed to beat just paying it off.

But i don't fancy trying to work it out with excel.

iBankAllDay · 24 Apr 2007 at 20:47

You can request expert advice and guidance from Cash Questions. Somebody, most likely an IFA, will get back to you with information

.

sunama · 25 Apr 2007 at 01:37

moid said:
ISA alone wont cut it (3k max a year) so you will need an alternative investment - in a fund perhaps?

I thought ISAs were £3600 for 2007/2008?

Raymond Lin · 25 Apr 2007 at 01:42

sunama said:
I thought ISAs were £3600 for 2007/2008?

it won't comes in force til next april.

moon man · 6 Jun 2007 at 19:21

In the end i paid 12k off the mortgage , this had the instant effect of lowering my normal payment from £265 ish to £177 a month so by just keeping my payment the same im getting a £90 ish overpayment ontop of this ive increased my payments to £500 so just over 5yrs should be paid off.