Individual Savings Account (ISA)
An ISA is an investment plan which may be used as a mortgage repayment vehicle, although it cannot be assigned to a third party (i.e. the lender). ISAs are flexible in that they do not have a set investment period, contributions can be varied and lump sums may be added within Inland Revenue limits.
They are potentially tax efficient, particularly for higher rate taxpayers. A wide range of investment options are available and the funds ought to grow quicker than a similar fund in a life policy due to the tax advantages.
For more detailed information see our ISA Investment page.
ISA's have replaced Personal Equity Plans (PEP). If you have had a PEP as a mortgage repayment vehicle in the past, it will be necessary to review your arrangements in April 2004.
