Endowment adviced req

Muscle750

I am considering selling my endowment and pay off a lump sum on my mortgage and clear some other debts as well, My mortgage is split part interest and part repayment the endowment is obviously for the interet only, am i legally obiliged to tell the mortgae company that i am selling my endowment, My mortgage is for 117000 inc the 40k interest, Horrible to say i know but i will more than likely have a ionhertience within the next 5 years of approx 70k .
Also the sale price of the endowment is 23k will i have to pay any tax on that figure?
My mortgae has 3 years left on my 5.09 fixed rate. so obviously to me when the times up i can just remortgage the full balance on a repayment
I am hoping by 3 years without the inhertience my mortgage will be approx 90k
I am only doing or considering this as i am finding it very hard to pay all the outgoings everyones been paid and no one is chasing me ........yet!
and id rather do something now, my job ive been in 20 years has gone very quiet and no OT etc meaning a drop of £250 a month in salary.

happybroker

if the mortgage is fairly recent it's pretty unlikely the endowment is assigned to the lender. If that's the case they have no say so over what you do with the money.

if you have other debt that you are stuggling with at the moment the proceeds may be better used to repay this enabling you to pay more toward the mortgage if you don't want to rely on the inheritance.

if not you could reduce the amount of the mortgage (watch out for early repayment charges though) and the onus will be on you to ensure you sufficient means to repay the mortgage at the end of it's term.

It is always a good idea to speak to an IFA before surrendering an endowment.

re drop in income.....are you a mortgage broker also?!?

good luck, i hope it all works out well for you

Muscle750

No it isnt assigned i was going to reduce my mortgage by £11k i am allowed to pay 10 percent of the balance as a single payment every january without any fees etc. The other money left about 12k would be used pay off other unsecured debt, working it out i would be approx £450 month better off although obviously this figure is not what im left with but more of a less i gotta find.