I have an Alliance and Leicester Fixed Rate Mortgage (4.94%) that I took out in 2006 for £130,000 that runs out in August 08 (I will have 18 years left). I am allowed only one overpayment every January and can pay upto 10 per cent off. I have £7500 in a Halifax ISA (5.75%) which I intended to withdraw to make an overpayment. The problem - I will lose 180 days worth of ISA interest if I withdraw the money early to make the overpayment. Is it worth me losing the interest to make the overpayment? Advice please?
I have an Alliance and Leicester Fixed Rate Mortgage (4.94%) that I took out in 2006 for £130,000 that runs out in August 08 (I will have 18 years left). I am allowed only one overpayment every January and can pay upto 10 per cent off. I have £7500 in a Halifax ISA (5.75%) which I intended to withdraw to make an overpayment. The problem - I will lose 180 days worth of ISA interest if I withdraw the money early to make the overpayment. Is it worth me losing the interest to make the overpayment? Advice please?