Can we use equity-based ISAs to offset a mortgage?

Posted on 12 July 2007

My wife and I have quite a significant investment saved in various stocks and shares ISAs (about a third of the value of our mortgage). Is it possible to use these equity-based ISAs to offset a mortgage? If so, is it a good idea?

Chris

 

Hello Chris, 
 
Unfortunately, no you cannot offset these as they are investments and only cash can be offset.  What you can do though, is work out whether you are making more from these investments than you are paying for your mortgage in interest, once you take into account dividends, net income and capital gains.  If your mortgage interest is more, and you don't believe that the equity-based ISA is going to start performing any better, you could consider selling some of the investments and paying off (or offsetting) some of your mortgage.
 
 
Katie

Category: Offset mortgages

 

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