interest only - what about the capital

Worriedsick_2

we're thinking of going interest only for a while to help us clear off some debts.
However, I still want to be paying in to an account towards the capital on the mortgage.
Now that Endowments don't exsist what should we be paying in to?

_Andy_

If you're going IO to put money towards debts I don't understand why you'd then be wanting to be investing to pay off capital.
Surely better to do one or the other?

Worriedsick_2

we're consolidating the debt in to the new interest only mortgage so we'll have extra money to then pay in to savings towards the capital.
The debt problem is too big to pay off monthly via the savings achieved on the monthly payment from the IO mortgage - consolidating is the only way and the rate we have got is excellent.
Just don't know where I'll pay the money towards the capital in to.

EdInvestor

Use a stocks and shares ISA, that's equivalent to an endowment, but tax free and no unnecessary life cover.

_Andy_

Ah OK.
Well you could either just overpay on the mortgage (assuming your product allows it), or invest into something like an ISA.

Worriedsick_2

ok - brill thnks - an ISA it is then as the product levies fees for overpaying