Paying off Mortgage with ISA Savings?

[ciscobloke01]

Hi

My Mortgage will soon be coming off its fixed deal and I am shopping around for the best deals.

Im edging towards the HSBC Lifetime Tracker @ 2.99% with no fees as from what I can tell its flexible and will allow me to shop around longer to fix down if needed at anytime in the future.

My other other option and main query is, should I use My wife's & I's ISA savings to pay off the mortgage altogether? Currently between us we have enough to wipe out the £74k debt but obviously we would be loosing all those previous years tax free savings. I'm just not cleaver enough to work out what is best?! Keep savings and Mortgage or clean off mortgage and start saving again in the ISA's? Come renewel time there will be 15 years left on mortgage.

Thanks in advance for any input
Michael

[jpg7n16]

We're primarily US based, so you may have to clarify some things. What is an ISA?

We have IRAs in US. Which are tax advantaged retirement savings accounts. Which we virtually never ever recommend cashing out to pay off a mortgage. That's a pretty terrible decision here. Wipe out retirement savings expected to earn 7-11% to pay off a deductible debt that doesn't cost more than 5% to begin with?? Pretty awful decision.

If an ISA is like an IRA, you should not w/d to pay off your mortgage.

[ciscobloke01]

Sounds Sounds similar I guess. An ISA is a Tax free savings account that allows you to save upto £5600 ish per year tax free. If you take the money out you loose all previous allowance and would have to start again paying in uptp £5600 per year per person max.

Rates are poor though on savings and the ISA is currently earning me 3%

[jpg7n16]

Rates are poor though on savings and the ISA is currently earning me 3%

In the US, you can invest IRA money in various things, more than just CDs or something low interest. Can you not invest those funds into stocks/bonds/mutual funds?? If so, that's where you should be for long term tax free growth.