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   ISA mortgages explained.

 

ISA Mortgages.


An ISA is another method of accumulating capital to pay back an interest only mortgage.

ISAs are tax-efficient products and generally offer better value than endowments.

The accumulation of capital to repay the mortgage is totally dependent on the performance of the funds chosen.

The ISA has no fixed term so if the investment has performed particularly well the outstanding capital may be repaid early.

The lender will generally insist on level term assurance with a sum assured equivalent to the outstanding loan to cover the life of the borrower.

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