How much should we increase our ISA payments by to cover the increase in our mortgage?

Posted on 5 March 2008

Hi Katie,

I am moving house. My partner and I have an interest only mortgage of £161,000 and pay £550 per month into an ISA. We think we will increase our mortgage to around £210,000. How much should we increase our ISA payment by to cover the increase in our mortgage?

Thanks,

Eleanor

Hi Eleanor,

Only an investment advisor can suggest a suitable level to achieve another £51,000.  It depends on the interest rate you would be getting, and how long you have left to save it in. Speak to your current ISA provider first.  If it is more than £33 a month, you might exceed what you can put into an ISA each year, and an additional savings vehicle might have to be used.

Regards,

Katie

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