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Endowment shortfall advice
Options
Heloise
Posts: 1 Newbie
Hi everyone, I am a newbie and I wondered what you wise people would do in my situation...
My husband and I have a mortgage on a house we bought together which is part repayment and part interest only. The interest only part is around £30,000, as when we got married my husband had an endowment mortgage on the house he sold and it was better to keep that going than cash it in early.
The endowment is underperforming, at the last count (a few months ago) it was predicted to be short by about £4,000 when it matures in 15 years time.
My options to plan for this seem to be to take some cash now (around £2,000) and stick it in a high interest account and leave it there so that by the time the endowment matures, I have a cash sum to pay off the shortfall.
or
I could change £4,000 of the interest only part of the mortgage into repayment (at a cost of £50) and pay it off now.
How do I decide - make a spreadsheet?! What else do I need to take into account?
My husband and I have a mortgage on a house we bought together which is part repayment and part interest only. The interest only part is around £30,000, as when we got married my husband had an endowment mortgage on the house he sold and it was better to keep that going than cash it in early.
The endowment is underperforming, at the last count (a few months ago) it was predicted to be short by about £4,000 when it matures in 15 years time.
My options to plan for this seem to be to take some cash now (around £2,000) and stick it in a high interest account and leave it there so that by the time the endowment matures, I have a cash sum to pay off the shortfall.
or
I could change £4,000 of the interest only part of the mortgage into repayment (at a cost of £50) and pay it off now.
How do I decide - make a spreadsheet?! What else do I need to take into account?
0
Comments
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What is the surrender value of the endowment policy? What is the interest rate on your mortgage?
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Post some info about the policy
Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgageTrying to keep it simple...
0
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