2yr Mortgage Deal ending Dec.

golden_girl

I know December is a long way off but just looking for some general advice.
My mortgage was taken out in 2004 is a fixed rate 5.390% till 31/12/2006.
Loan amount £92250 for 20 years which includes £43,000 interest only. Repayment type Part Investment/Part Capital and interest. Monthly amount £529.41

I have an endowment plan that matures 1/12/2014 Monthly payments £78.94. Details are as follows:
Sum Assured £19640.00 with profits. Guaranteed Death Benefit £40,000. This plan does have a terminal bonus on maturity.
Last letter received dated 15.05.05 is policy on track to pay £40,000.
They have stated the following: Assuming your investments grow in the future at:
4% Projected final amount £39,900
5% Projected final amount £42,400
8% Projected final amount £50,800
Target Amount £40,000

I also have another endowment plan that matures 24/08/15 Monthly payments £5.13. Details are as follows:
Sum assured £3,200
Last yearly statement 2004
Guaranteed amount for bonuses £1,111
Bonuses added to your plan in previous years £461.80
Total of guaranteed amount plus all bonuses £1,573.96.

When my fixed rate ends how would I decided whether to go on all repayment mortgage. (Not sure how much extra a month this would be) so when the endowments do mature this is extra savings for later on in life.
Or do I stick to with a Part Investment/Part Capital and interest and perhaps reducing the length of term???

Any advice would be appreciated. :j

Ian_W

Assuming your mortgage still has 20yrs to run and in December you remortgage to one of the better rates CURRENTLY available [rates may be lower or higher by then?] of <5% - then on repayment your £92250 mortgage's monthly cost should be about £600. Seems a worthwhile move to me if you can afford the extra, if you can't just move more to repayment w/o moving all of it.

Your first endowment certainly seems to be on track and if you're prepared to take the risk involved in some of the money being invested in the stock market it certainly looks worth keeping to me, though I'm certainly no expert. If it's no longer backing a mortgage being paid off, therefore no risk to your home if it does under-perform in it's latter years, I would keep it. The second one has such a low monthly premium & payout[about be the price of a night at the pub by 2015?] I wouldn't worry about it either way. But if you do jack it in you could use it to help pay off the Barclay card.

HTH & BoL

golden_girl

Thanks for your reply.


I think we may go towards a repayment as we do have £300 extra spare each month now we are budgeting. Was going to do it when we brought this 2nd house but wasn't sure at the time.
My 2004 bonus statement(Can't find my latest one) shows total guaranteed value is £34,016.48 and as we have a terminal bonus on maturity(however small this may be we let this policy run its course as it is only £78.94 a month.
Thats a good idea using the 2nd policy to pay towards the Barclaycard as this policy will not be used for the next mortagage.(or I could use it for a good night out :beer:

Thanks again.

Ian_W

With 2004 showing a total guarenteed £34K I would have thought it almost a racing certainty to beat £40K with 11yrs [at that time] left. Which insurer is it with? They're always getting named and shamed on here - sounds like it should be named and praised.

I could use it for a good night out :beer:

Look forward to an invite!! :j

golden_girl

Its with the The Royal London. We took it out in 1989 2 years before purchasing our 1st home (renting at the time). We have had many policies with them in the past mainly Life Insurances. The last couple of these that matured was not as good payouts as in previous years. (Took one out for my daughter 18 years ago and have warned her not to expect millions when it matures in 3 years!!!!!!! :rotfl: