Confused about isas and mortgage.

[Embracethechaos]

Hello, I'm confusing myself with finances. I've just got my first mortgage, need to make the deposit payment in the next 2 weeks. Most of this money is in an acessable isa. When the mortgage starts I'll have less than £10k in the isa. I have not used any of my isa limit this year. Am I right in thinking there is no point doing an isa transfer as I'm not going to reach the £20k savings limit this year? Can I just close my current isa and reopen a new isa for savings? Thanks.

Do you mean you need to use your isa money for a house deposit?

The mortgage itself is well explained and overpayments are possible but variable savings rates are higher than the 3 year fixed rate mortgage rates, so I should not overpay until closer to the anniversary?

I have no idea what you're talking about I'm afraid.

Yes I do. Most of my isa money.

Don't worry, I'll talk to someone. I'm dyslexic and feeling particularly dippy right now so a forum is not the best place.

I think you're asking whether you should take money out of your isa to use as a house deposit or whether you should use money from elsewhere?

Do you have money elsewhere?

No, I was asking if isas are really worth it for small savings. Found out there not because the first £1000 of interest is now tax free.

If I understand correctly, you're taking most of your savings out for your deposit (inevitably), and would like to move your remaining savings to a different ISA or other investment with a better rate than where they are currently?

You are right, that if you are certain your remaining savings plus anything you save this year won't be above 20k, then if could be simplest to just close the ISA and start a fresh one rather than arranging a transfer. I know what you mean about the "are ISAs worth it?" - but, look at all your investment options and you may still find you get a better rate for your needs in an ISA.

Thank-you python, you have understood me correctly.