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Paying off the endowment element of mortgage
whitesatin
Posts: 2,102 Forumite
We are aiming (by cashing in endowments, premium bonds and ISAs) to pay off our mortgage over the next few months. We have been overpaying on our fixed rate mortgage and now owe around £85,000. The fixed rate ends at the end of September 09.
The mortgage is part endowment, part repayment. I am presuming that once we go onto the standard variable rate, we are free to make lump sum payments without penalty but I will check that out.
Anyway, my query is can I specify when paying back my first lump sum, that it goes to pay off the endowment element or does it not make any difference?
I know this may not make economic sense but we have our reasons to want to pay off the mortgage as soon as possible as we will both be retiring unexpectedly very soon.
Any help appreciated.
The mortgage is part endowment, part repayment. I am presuming that once we go onto the standard variable rate, we are free to make lump sum payments without penalty but I will check that out.
Anyway, my query is can I specify when paying back my first lump sum, that it goes to pay off the endowment element or does it not make any difference?
I know this may not make economic sense but we have our reasons to want to pay off the mortgage as soon as possible as we will both be retiring unexpectedly very soon.
Any help appreciated.
0
Comments
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yes you can specify. Generally once you come to the end of the term there are no limits on repayments / lump sums0
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