You have to decide whether you need or want liquidity for the future to make home improvements etc... without having to later release funds from your property through remortgaging etc... i.e. might you need cash in hand one day and how much?

Purely on a financial basis you will probably be much better off switching from the ISA to mortgage overpayments as ISA's are unlikely to pay interest rates higher than your mortgage rate and reducing the capital will take literally years off the total mortgage term, saving you £000's in interest.

Hi,

I've been struggling for some time now with whether I should be making overpayments on my mortgage or whether I should keep investing in an ISA.

I have a variable repayment mortgage with Nationwide for £164K. Since 2007 I have been making monthly overpayments of £300 per month.

In parallel, I have a cash ISA (also with Nationwide) that is now worth £13K.

My wife and I would like to buy a new house in the next 6-12 months and we can't decide if its worth using our money in the cash ISA to make larger monthly overpayments in order to reduce our mortgage.

I have heard different arguments, i.e. invest the money rather than overpay, or reduce the amount of mortgage debt as soon as possible.

Do you have any advice on what would be the best approach please?

Thanks