what to do with this cash

poshman

Hi Helpers, My endowment policy matured in Dec 09 albeit with a 7K shortfall, anyway phoned C & G and told them I would like to pay off 12K off my mortgage. " ok that will cost you £300 " I paid the max I could without a penalty 1.9 k

what is the best thing to do pay the £300 penalty or keep the money in a high interest savings account ( if there is one ) or wait until my fixed rate is finished in Aug 2011 when I can pay off the 12K without a penalty

I owe about 34K at present... cheers P M

McKneff

I think the experts would need to know the rate of interest you ae paying till
August 2011

poshman

I think its 4.65% I am making an overpayment every month, the payments are £247 but im paying £300

dimbo61

Doubt if you will earn 4.65% interest from any savings account
Can you reduce the term of your mortgage ?
Therefore mortgage payment goes up big style each month and use the savings in the bank to make up the difference each month !
If not pay the lump sum off the mortgage and take the £300 hit
Keep your monthly mortgage payment the same £300 a month ( if allowed!)