Standard Life Endowment Mortgage

arianrhod

We have got a interest only mortgage of £35,000; £25,000 of which is a SL endowment mortgage which will have a huge shortfall; £10,000 with Halifax Homeplan which is also not performing well and will have a shortfall.

We are currently on a tracker rate which is excellent at the moment. Our current mortgage deal ends in July 2009 and we're debating whether to pay off the mortgage with our Cash ISA savings of £30,000 or to keep this where it is and convert our existing mortgage to a repayment mortgage.

Our mortgage term ends in 2017.

Should we surrender/sell the Standard Life Endowment Policy or can it be frozen and used as savings in the future?

Any advice appreciated.

Thank you.

Arianrhod

Gorgeous_George

I would surrender the policies. Standard Life announce results THIS month and I would surrender today before they slash payouts yet again.

If you can invest at a higher rate than your tracker (or want to keep access to the cash), do so. If not, pay it off the mortgage.

GG