Does this scenario of paying off a repayment mortgage earlier seem sensible

Curlylox_2

I have a repayment mortgage with 5 years left to run.

My payment on the Interest is £250 per month.
My payment to the Endowment is £100 per month. (Which will also be short by £15,000 at the end of the remaining 5 year term)
The settlement figure today on the Interest part of the mortgage is £5000.

Therefore, would the following seem sensible.

I have a sum of £5000 in a savings account (which is attacting very low rates) that I can use to repay the Interest part of the mortgage (I would not pay the entire amount just 99% so the mortgage does not end and I am forced to repay the Capital part). I can then pay the money I would have paid into the Interest part of the mortgage which is £250 per month, into the Endowment or an ISA instead (which is attracting a better return than a regular savings account). Therefore I would achieve the £15,000 capital part of the sum I owe at a much earlier date than I am currently expecting, thus paying of the entire mortgage more quickly.

This seems a quite feasible idea in my mind, but is it actually a better solution to pay off the whole mortgage or am I deluding myself!

Any help would be greatly appreciated.

Trying_to_be_good

Sorry, but really confused by the facts!

You seem to have a part-repayment, part-interest only mortgage, with five years less to run.

You pay £250 on the interest-only part of the mortgage, and £100 separately to the endowment.

The balance on the interest-only part is £5,000, which the endowment would more than cover (even though it will fall short of the target amount).

£250 per month interest only on a £5,000 balance is 5% interest PER MONTH, nearly 80% per year - please tell me something is wrong with the figures!

If you repaid ALL the interest-only part, a condition means you'd have to repay the capital part (sounds a strange condition).

I think what I'm asking is please check the balance outstanding on the two elements, and let us know - what's outstanding on the interest only element, and what's outstanding on the capital repayment part.