morgage endowment

colin13

hi asking this question 1 year early but it is playing on my mind:)
ive an endowment for part of my morgage due to end next april,what do I do with this money,Do I stick it in a bank:) or pay it to lower morgage and accept probably the charges (with abbey)

Robert_Sterling_3

Is it an interest only mortgage?

colin13

Robert_Sterling wrote: »

Is it an interest only mortgage?

yes robert

ronald208

I have four endownments for my mortgage, all maturing at different times, starting from June 2010. When I remortgaged 3 years ago I asked about early repayment charges as I could pay 10% each year without penalty. I was told that as the endownments were to repay the mortgage there was no early repayment penalty.

This is with the Halifax.
Ron

jill2002

Colin,

Ron is right. With Abbey as long as you send a copy of the endowment maturity letter, there will be no early repayment charge. However, it is a different story if you are cashing in your endowment early (I know that you are not, but for the benefit of other people reading this .....)

Robert_Sterling_3

Your mortgage has to be paid off eventually.
One common method is to have a repayment mortgage.
Another method is to mix house purchase with a gamble on the stock exchange. You put money into the stock market and hope that the stock market works well for you.
It works well for stockbrokers who get a percentage of turnover. It sometimes works well for the man in the street. Sometimes this is not the case. Past performance is not a guide to the future. The stock market can go down as well as up. I would suggest that you consider the posibilty of using the money you get to pay off part of your mortgage. Also consider changing to a repayment mortgage.

Gorgeous_George

I recommend that you consider surrendering. Not that you should do so, but it is worth considering.

GG