What is an ISA Mortgage?

An ISA mortgage is effectively an interest only mortgage with an additional investment plan in the form of an individual savings account (ISA). An ISA is a stock market based investment that benefits from tax free growth within the ISA funds.

Pros and Cons of ISA Mortgages

Pros

  • If the ISA performs well you may be able to pay off your mortgage early or enjoy a lump sum at the end of the repayment period, in addition to paying off your mortgage
  • ISA's are potentially tax efficient, particularly for higher rate taxpayers
  • An ISA can be selected to suit your circumstances and risk profile

Cons

  • Your debt remains constant throughout the mortgage period
  • You have no guarantee that you will have sufficient funds to pay off the mortgage at the end of the repayment period, as the ISA could perform below expectations. (By monitoring your ISA's performance, you could make additional contributions during the repayment period if you felt the underlying fund was under performing)

Your home may be repossessed if you do not keep up repayments on your mortgage

Discounted ISA Mortgage Protection Insurance

On ISA mortgage protection insurance cover, critical illness insurance cover and permanent health insurance cover Go Direct sacrifice a minimum 50% of the initial commission that the provider would have paid to us back into your policy reducing the cost of your monthly insurance premiums. Get an instant ISA mortgage life insurance protection quote today from Go Direct.

Do you want ISA Mortgage Advice?

For ISA mortgage or remortgage advise please feel free to contact us for expert mortgage advice from our representative whole of market panel of lenders.