Should I pay my mortgage off early?

angelfromthecoast

Advice/opinions please. I owe 13,665 on my mortgage. I'm paying a hefty 6.59% to the B&B. It's an endowment mortgage with exactly 5 years to run. Repayments currently £109 per month. I'm also saving £50 a month in an ISA to shore up my failing endowment. I have been given a redemption figure of 13,932. We currently have funds of around 10,000 in a couple of ISAs and about 4,500 in spare funds floating about. Should I pay my mortgage off and keep the endowment running (it's only £17 a month). Or should I just keep paying the monthly amounts. Can't really remortgage as mortgage is so small and I don't really wan't to borrow any money. Please help or ask for more details if needed. Thanks

Ian_W

Hi angelfromthecoast and welcome,
If any of your savings, even tax free in an ISA's, are paying 6.9% or more please tell me where - as I'd like a bit of that please!!

On the assumption they're not earning the level of interest you're paying B&B to keep your mortgage, it seems to me the only answer is - pay off the mortgage. You could then save the monthly payments to help rebuild your savings quite quickly.

If you can do this, not leaving yourself skint, without surrendering the endowment then that is what I would do for now.

Whether to surrender the endowment is a whole different question [post again, rather than using this title ]which requires a lot more info about the policy itself, even then there is a fair bit of guesswork involved, but if you post full details [company, unit or wp, surrender value, bonuses, guaranteed sum assured etc] I'm sure someone will give useful advice.

BoL.

angelfromthecoast

Thanks for the reply and the welcome Ian. Pretty much what I thought. I think I'm gonna keep the endowment on, but I'll certainly give it some thought. Anyone else with any opinions please feel free to post.