Covering interest only mortgages with an ISA

[smithru]

Hi,

I wanted a rough estimate as to how much I would need to invest per month in a Maxi ISA to cover �112,000 of interest only mortgage-mortgage term is 25years.

Thanks

 

Russell

[Loosehead]

I have a spread sheet that does this. as always it depends on growth. But you would have to save as follows to acheive 112000. Plus the interest on your mortgage and probably some life cover. Personally I'd put the amount straight into the mortgage and forget the isa.

I tried 2.5, 5 and 7% growth for 300 months:

annual growth rate/monthly amount/ total paid

2.5% / 268.56 / 80567

5.0% / 187.29 / 56188

7.5% / 126.88 / 38063