Should I keep my endowment funds?

wozzoj

Looking for a bit of advice from you clever people out there!
Mortgage has come to an end after 25 years
Original loan was for £12500
Endowment, just finished, to cover, paying out £8700 due to shortfall.
Current mortgage payment interest was £38 per month (yes only!)
Endowment per month was £18
Have saved up to cover balance of mortgage to pay building society.
Question arrises. Should I pay off the mortgage in full ,carry on paying the interest on the original loan (£38, less the £18 I don't have to pay the endowment company), should the society accept and put the endowment monies into an ISA.
Interest rates don't look like going up for the forseeable future so the payments should not go up much and the amount is low enough not to worry about loosing my home (worth at moment about £130,000) .
Advice would be appreciated

dimbo61

Bit confused by what you want to know
What is the interest rate on the mortgage ?
Whats the interest rate on your savings ?
If you have the money to clear the mortgage now then why pay the lender any more interest!
Yes Cash ISA,s would be a good place to put the endowment money ( poor performance from endowment !!!)
Long term savings once mortgage is paid off for retirement !

EdInvestor

wozzoj wrote: »

Question arrises. Should I pay off the mortgage in full ,carry on paying the interest on the original loan (£38, less the £18 I don't have to pay the endowment company), should the society accept and put the endowment monies into an ISA.

The society will expect you to use the maturing endowment (plus any extra required) to pay off the mortgage on time. The only reason you would keep the mortgage going is if the interest rate is so low that you can get a noteably better return on the money by saving it.