Individual
Savings Account ( ISA ) Linked Mortgage - Mortgage Information
What
is an ISA Linked Mortgage?
Individual
Savings Account (ISA) linked mortgage
The
loan or mortgage is intended to be repaid from the proceeds of an
Individual Savings Account ( ISA ). You can invest in a
cash, equity (stocks and shares) or life insurance ISA. Equity ISAs
are normally chosen as they can offer the best potential return
and will generally be managed by a fund manager.
If
your investments perform well, you may be able to repay all of the
loan from the return. You may even be able to repay the loan earlier
than originally planned. If your investments do not perform well
you may have to find the shortfall required to repay the loan yourself.
- ISAs
are free from personal Income Tax and Capital Gains Tax under
the current UK tax legislation
- The
maximum total investment for ISAs in each tax year is £7,000
(this applies until 5th April 2006)
It
is always advisable to take out a life assurance policy in case
you die before the mortgage is paid off.
List
of Major Mortgage Lenders
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
