mortgage payoff while unemployed

wazza

for over a year i had to quit my job when i became a lone parent. I am on income support and my mortgage interest is also paid by the benefit office. I have about 9 years left for my endowment mortgage to finish. Am i best to pay extra every year to reduce the capital or simply let it run considering i am not paying the interest. Hopefully when my young child attends school full time in sept next year i plan to go back to work so dont think of me as sponging off the system. I have worked for 25 years.

silvercar

Do you have projections for the endowment?

If the endowment is going to pay off the mortgage you don't need to make extra capital payments.

If you do have any spare money I would be inclined to keep it in a high interest savings account. At least then you have it in reserve. If you reduce your mortgage you are reducing the interest the benefit people will be paying, but you will not be gaining anything from the money. Putting the money in a savings account means you get the interest.

wazza

this was my inital feelings but the trouble is that while on benefits i am only allowed to save up to £3000 before my benefits are affected