Paying off the bricks and mortar

With endowment policies suffering under a stream of recent bad press, Isas have emerged as a potenti...

With endowment policies suffering under a stream of recent bad press, Isas have emerged as a potential vehicle to use for paying off mortgages, particularly interest only mortgages. By taking out the maximum Isa allowance each year, with a view to building up a lump sum to pay off the principal amount of the loan, the money investors can also take advantage of the tax breaks. Matthew Hall, reputation manager for Halifax's long term savings products, says the tax advantages of the Isa are a major plus if an investor wanted to use the vehicle to pay off an interest only mortgage because the...