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Offseting a mortgage with an endowment
carryoncamping
Posts: 10 Forumite
I'm thinking of converting my endowment mortgage to a repayment offset mortgage.
Seeing as an endowment is really a glorified savings plan can I offset my new mortgage with it, or do building societies need 'raw' cash in your account?
Seeing as an endowment is really a glorified savings plan can I offset my new mortgage with it, or do building societies need 'raw' cash in your account?
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I am not aware of any lender that will offset an endowment policy - Your endowment will be with another financial institution and they do not have any access to the cash to invest elsewhere and make money on.
All the ones I can think of will want you to put cash into a savings and/or current account with them that is linked to the mortgage.I am an IFA (and boss o' t'swings idst)You should note that this site doesn't check my status as an IFA, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Seeing as an endowment is really a glorified savings plan can I offset my new mortgage with it, or do building societies need 'raw' cash in your account?
Ah, but the problem is that an endowment is not a savings plan at all - it's a risk based investment.That's why so many people have come unstuck - they didn't realise their money was going into the stockmarket, rather than the bank. :eek:
Of course you can always surrender the policy and use the cash proceeds to offset the mortgage.Trying to keep it simple...
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