Advice needed on my mortgage

MrkD_2

Hi
I would very much appreciate any advice on the best way forward on our mortgage.

We took out an endowment in 1989 for £65000 ( finishes 2014) when we moved into our first house. Moved in 1999 took out a further endowment for £42,000(finishes 2019). Ournew mortgage was for £107,000. Received warning letters about shortfall a few years ago and changed £35000 to a repayment mortgage. This was about £10,000 over the expected shortfall. Our mortgage is a fixed rate 5.89% until May 2011 and to change this mortgage deal would cost £5110.00

Received a red alert this week for a further shortfall and need to increase repayment to around £45-£50,0000. The mortgage company will not offer us a better rate until 2011. Was thinking about cashing in both endowment policies , the value of them is around £36,000. This figure is from the investmnet companies themselves.

If I keep the policies especially the one which matures in five years time I could pay off a lump sum then. By which time I will have another mortgage deal and will make sure there is no penaly. Then keep the payments at the same amount to decrease the loan time.


Not sure what is the best way forward, do I increase the mortgage repayment figure. Cash in the policies pay off a lump sum and suffer the penalty. Overpay the mortgage or is there another solution.

Was going to use the money to pay off a some of the mortgage and convert the rest to repayment but to do this I will be charged 5% penalty.

I feel very agrieved about the whole thing and wished I had taken action against the endowment company. I was sold the policy though my building society which used to be The Leeds.

My mortgage company said there was no negotitation on fees rates etc until after the my current deal had expired.

Any help thoughs advice would be most welcome.


Regards

Mark

MrkD_2

Anybody help please??