Re mortgage

youngy_2

Was sold endowment/mortgage appox 14yrs this now has a serious shortfall so was advised to save in seperate high interest account, unfortuneatly this is proving impossible as the amount is to high. Have decided to re mortgage with c&g normal capital repayment (but were told this tracks the basic B of E base rate + 2%) hope this is the right way to go??
The endowment with friends provident is still running with 12yrs remaining at a cost of £73.85 p/mth. Having paid approx £12,400 in to date the projection is a maturity of £26,500 ( the original projection was £40,500) Would we do better taking a cash in value now of £9,700 and paying this off the mortgage capital or leaving it to run, before setting up the new mortgage. I understand we will loose out on the endowment but with the offset against the mortgage capital would this be benificial.
Regards
Youngy:eek:

smilely

Hi,

You need to get some proper advice with cashing in the endownment as you may have other benefits (such as life and critical illness cover that would protect a higher amount than just the value of the endownment) that would need to be replaced f you cashed it in. If you do cash it an and use the funds to reduced to mortgage this might mean you have a lower monthly payment, or a shorter term, but you might need to take out extra things like life and C.I cover to make sure you still have the same cover as you do at the moment. This could cancel out any savings made.

I would suggest you look at how much you would save if you used it to the mortgage and take it form there.

Also you have said that if you cash in the endoenment now you will loose about £2,700 of what you have paid, will you make anything if you keep the endownment to term?