ISA mortgage

Like an endowment mortgage, an ISA mortgage combines and loan and an investment, in this case an ISA (Individual Savings Account). ISAs are a way of saving tax free and were introduced by the government to replace PEPs and TESSAs.

There are two classes of ISA available - a maxi ISA and a mini ISA - and you are currently allowed to save up to £7000 in any tax year. In any one tax year you are allowed either one maxi ISA or up to three mini ISAs.

An ISA may be a stocks and shares, cash or life insurance investment. Maxi ISAs are typically stocks and shares investments, which is why they are commonly used to support mortgages.

Not only is an ISA mortgage tax efficient, it is also flexible as you can stop and start payments to your ISA as and when you like. Nevertheless, it is an investment and brings with it the risk that it may not grow sufficiently to pay off of the loan amount in full at the end of the term.

For more information please click on the type of mortgage you are interested in:

• Repayment Mortgage - repay the whole loan amount back with interest
• Interest Only Mortgage - repay only the interest on a mortgage
• Endowment Mortgage - a combination of a loan and an investment
• ISA Mortgage - combines and loan and an investment with an ISA
• Pension Plan Mortgage - a tax efficient but non flexible option
• Buy To Let Mortgages - for second property rentals
• First Time Buyers - get on the property ladder
• Spanish Mortgage (for holiday home) - to buy your dream holiday house!

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