What do i pay first endowment or replayment

WinLose777

Hi

i am new to this forum need advice pse I have 56k mortgage, 45 endowment and 11 repayment i have 10k lump sum to put into mortgage, what do i put it on repay or endow ( rate is 4.85 on both)
thanks

MoneyQueen

Hi WinLose777,

Sorry don't have the answer to your query but I am sure someone will have ...

Wish U a Happy New Year

working1

sorry to hijak this thread having trouble posting, apologies to one member who may get a half-written private post as I couldn't work out how to do it publicly!

Main Question is about endowment policy as follows:

Provider: Prudential
50% With-profits @ £10,420
50% Unit-linked @ £14,336
Declared Bonus @ £1807
Surrender Value @ £29,966
Maturity Date: 28/10/2019
Maturity forecasts: @ 4% £70,200
@ 6% £83,900
@ 8% £100,000
Monthly premium £177

Debts as follows:
£1000 overdraft
£3500 on virgin 0% deal ends Sept 09
£3300 to brother paying back £100 p/month
£2,500 overpaid tax credits currently not paying but will have to make offer in Jan
£176,000 mortgage with Bristol & West, self cert and interest-only.

Self-employed, currently on mat leave so claiming maternity allowance until Aug 09

mortgage due for renewal April 09. currently paying £145,000 @ 4.99% and remainder @ 1.34% above base-rate. Very worried about them not re-newing my mortgage in April as self-cert now tightened rules and am on mat-leave so they may look into my finances more?

Should I cash in endowment to pay off all debts and invest remainder in stocks/shares as can get at low prices or not? Would I be better trying to convert some of mortgage to re-payment?

mramra

Wrong board, try the Mortgages & Endowments board, loads of people on there who can give you good advice.

working1

so sorry, can someone move my post to that place as I can't seem to do it (yes ok I am a posting virgin and not at all techy as you can tell)!

The thought of re-typing it all sends me bananas, please help?

barnaby-bear

working1 wrote: »

Self-employed, currently on mat leave so claiming maternity allowance until Aug 09
mortgage due for renewal April 09. currently paying £145,000 @ 4.99% and remainder @ 1.34% above base-rate. Very worried about them not re-newing my mortgage in April as self-cert now tightened rules and am on mat-leave so they may look into my finances more?

they might not offer you a great fixed rate deal but I'd assume your mortgage was for 25years or something and that it's only the fixed rate that ends, usually you'd automatically move to SVR (which with current rate drops may be quite favourable) with no need for finances to be examined etc.... is your mortgage supposed to be fully paid off in april or is it just the fixed rate payments ending?

Trying_to_be_good

working1 wrote: »

so sorry, can someone move my post to that place as I can't seem to do it (yes ok I am a posting virgin and not at all techy as you can tell)!

The thought of re-typing it all sends me bananas, please help?

If you click the ;edit; button it will let you copy the text on your post, then you can paste it as a new thread (blue button at the top) on the Mortgages thread.

Trying_to_be_good

WinLose777 wrote: »

Hi

i am new to this forum need advice pse I have 56k mortgage, 45 endowment and 11 repayment i have 10k lump sum to put into mortgage, what do i put it on repay or endow ( rate is 4.85 on both)
thanks

You're already paying back the repayment (11k) part of the mortgage - what plans do you have to repay the interest only (45k) part? You say endowment - is it on track to pay enough?

Personally, I'd pay it off the interest only part, so would then be less reliant on an endowment.