The truth about ISA Mortgages (General Comments)

Member Name: Potterton

Product:	General Comments
Date:	05/03/08 (32 review reads)
Rating:

Advantages: Very Good if you are certain that you will NEVER suffer a long term ILLNESS

Disadvantages: You may have to use your accumilated fund to support yourself

If a person using an ISA to repay their Mortgage was to become Unemployed or off work due to Sickness or Accident they would NOT be entitled to Means Tested State Benefits if the value of the ISA was over £16,000. The reason for this is the DWP treat the ISA as Accessible Savings.

The FSA being the Governments financial watchdog listed Endowments, ISAs and Pensions as suitable methods of repaying an interest only mortgage but made no mention of the DWP rules regarding ISAs. Most Endowments and Pensions used for Mortgage repayment are unaffected as they are not deemed to be accessible Savings.

There could be in excess of 500.000 ISA Mortgages in existence.
Do you think the people using ISAs to repay their mortgage should be made aware of the facts ?

ie: they may have to use the funds they have accumulated to repay the Mortgage to support themselves.

The ideal solution would be to treat ISAs used for Mortgage repayment the same as Endowments and Pensions.

If you agree, then please go to the Prime Ministers website and endorse this petition

http://petitions.pm.gov.uk/ISA-Mortgage/

Thank you.

Summary: Learn the TRUTH