Endowment maturity

ballerina295

Some advice please, I have an endowment which is due to mature on 1st March but my mortgage isn't finished until November 2011. Should I put the money into a savings account until then or should I pay it straight off my mortgage? I have a couple more small endowments due to mature later this year. None of the endowments are maturing at their expected value and I estimate I will have a shortfall of about £8,000. Thanks

hansi

One for Dunstonh:D

magpiecottage

Assuming you will not incur a penalty, use it to reduce the mortgage.

This will reduce the interest due and if you keep paying the same amount to the lender it will eat into the shortfall.

If you want to get rid of the shortfall faster you could increase your payments to the lender by the amount you were paying for your endowment.

Remember too that if you put the money on deposit, it is unlikely to get as much interest as you are paying.

What's more interest earned will be taxable but there is no tax relief on the interest you pay.