ISA Mortgages and Individual Savings Accounts explained, plus Mortgage assistance available
ISA Mortgages are an investment-linked method of mortgage repayment.
"Excellent, helpful service throughout."
Miss P., Skellingthorpe, Lincolnshire
Here we detail ISA Mortgages and their relationship with Individual Savings Accounts, and look at their advantages and disadvantages. We also provide details of the Mortgage help we are able to offer, although please bear in mind whilst we do arrange mortgages we cannot assist with invest-to-repay mortgage products such as the ISA Mortgage, but thought this information may be useful.
Table of Contents:
ISA Mortgages and their relationship with Individual Savings Accounts explained
So, as we discussed briefly earlier, an ISA Mortgage is a type of mortgage repayment that is investment-linked. With this type of product the borrower pays interest only to the lender, and runs an ISA (which is an Individual Savings Account) alongside, the intention being that the savings element will have grown sufficiently over the mortgage term so as to repay the principal amount borrowed.
What are the advantages of ISA Mortgages?
ISA Mortgages have certain benefits, which include:
- Tax-free growth
- Wide variety of investment choices from cash to higher-risk
- Easy access
- Ability to switch direction of new funds as contracts run annually
- Each individual has an annual ISA allowance
- Proceeds are tax-free on encashment
What are the disadvantages of ISA Mortgages?
There are however disadvantages to ISA Mortgages, and these include:
- As with any investment, their value can go down as well as up
- Accordingly, there is no guarantee that the mortgage will be repaid at the end of the term
- The maximum annual ISA allowable contributions may be insufficient to repay the principal sum borrowed at the end of the term, especially where the mortgage is in one name only
- The ISA itself is subject to government review, and could be withdrawn in future Budgets
Does Shire Direct arrange ISA Mortgages?
Well, we can certainly arrange the mortgage for you - but not the investment element.
Shire Direct does not arrange invest-to-repay mortgage products. It's important to remember that investment-linked mortgages are not guaranteed to repay the principal sum borrowed at the end of the term.
If you require certainty that your mortgage is repaid by the end of the term, then you will require a capital repayment product.
For help and information on mortgage products, either on an interest-only or capital repayment basis, remember our qualified mortgage advisors are available to discuss the options open to you. Naturally, we'll need to carefully assess your circumstances, needs, requirements and aspirations to come up with the most appropriate solution for you.
We believe you will find our service to be friendly, yet professional, helpful and unstuffy, but don't just take our word for it, why not see what some of our previous customers have said! So please don't hesitate to Contact Us if you would like to discuss your requirements, naturally without any obligation! Our mortgage advisors are available on Freephone 08000 282 281, seven days a week, until 10.00pm, and will be delighted to provide you with an in-principle decision, whatever your circumstances! Alternatively, you can also enquire online at any time!
Hopefully that has managed to shed some light on ISA Mortgages and Individual Savings Accounts for you, and answered any initial questions you might well have had. Remember, there is lots of useful mortgage related information throughout the pages of this site, and if you feel we can be of assistance with a mortgage or remortgage then we're only ever a free telephone call or a couple of mouse clicks away, and we'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.