Moving home - opinions please

debbieallan

Any opinions/advice welcome. We have 5 yrs left on interest only mortgage. Phoenix policy with about £15,000 shortfall (cost us £70 per month). They've given surrender value of £19,000. We would now like to move to a slightly bigger house, Considering cashing in the endowment, putting it towards our new house, and paying the rest of the loan as repayment over 10 years. Does this sound like the best idea rather than having a half interest only/half repayment mortgage with a potential shortfall? Or continue with the interest only for the next 5 years and see what happens?

dimbo61

People will ask what the endowment is now worth £19,000 and projected value plus and final bonuses.
To make life simple you could cash in the endowment and pay off some of your interest only mortgage ( check with lender first if allowed and any penalties ! )
You could then overpay your mortgage or save into ISA,s depending on interest rates by at least the £70 a month you are saving on the endowment.
When you find your new home you can see how much equity you have in your home and savings and what you can afford to pay for the bigger house.
Please go for a repayment mortgage and consider a long term fix