We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
A bit more mortgage help needed please..
Options
taz..ufos
Posts: 5 Forumite
I was on these forums a few weeks ago, after a bit of advice about my mortgage shortfall,
I have looked into it as advised and have now been to the building society and sorted out the shortfall side of it ( the borrowed amount was 40 k and the shortfall was going to be 18 to 20 k, so I have made 20k of it into a repayment mortgage and left the other 20k as interest only) the only thing is the very helpfull lady at the building society could not advise me what to do with the endowment and pension parts of the mortgage I am left with,
basically the paperwork that I received from the endowment shows two maturity values the first one shows that if I carry on paying the monthly payment of £67.40 until 2016 and the investments were to grow at 3% ( which I very much doubt) then I would get back £22,100 in 2016..
the second shows the values if the policy is paid up, and again shows if growth was 3% I would get back £17,000 in 2016.....
The next part is the pension part of the mortgage, again they have given me two options the first being carrying on the payments until 2020 and then if the investments had grown at 3.75 I would receive of £7,160 and an annual payment of £894..
the second option is to stop paying the payments now and then I will be able to take out a lump sum of £6,280 in 2015 with a annual payment of £784 to follow, I am fully aware that the figures that they have quoted me may be (or more likely not ) be correct.
My dilemma is which way to go from here, my gut instinct tells me to stop paying into the endowment and make it paid up, and to stop paying in to the small pension and take the lump sum to go towards paying off the mortgage, I would then use the 100 odd quid a month to go towards the repayment part of the loan from the building society.
Can any one offer any advice to if what I am thinking of doing would be a good move or is there any downsides to it. many thanks Steve
I have looked into it as advised and have now been to the building society and sorted out the shortfall side of it ( the borrowed amount was 40 k and the shortfall was going to be 18 to 20 k, so I have made 20k of it into a repayment mortgage and left the other 20k as interest only) the only thing is the very helpfull lady at the building society could not advise me what to do with the endowment and pension parts of the mortgage I am left with,
basically the paperwork that I received from the endowment shows two maturity values the first one shows that if I carry on paying the monthly payment of £67.40 until 2016 and the investments were to grow at 3% ( which I very much doubt) then I would get back £22,100 in 2016..
the second shows the values if the policy is paid up, and again shows if growth was 3% I would get back £17,000 in 2016.....
The next part is the pension part of the mortgage, again they have given me two options the first being carrying on the payments until 2020 and then if the investments had grown at 3.75 I would receive of £7,160 and an annual payment of £894..
the second option is to stop paying the payments now and then I will be able to take out a lump sum of £6,280 in 2015 with a annual payment of £784 to follow, I am fully aware that the figures that they have quoted me may be (or more likely not ) be correct.
My dilemma is which way to go from here, my gut instinct tells me to stop paying into the endowment and make it paid up, and to stop paying in to the small pension and take the lump sum to go towards paying off the mortgage, I would then use the 100 odd quid a month to go towards the repayment part of the loan from the building society.
Can any one offer any advice to if what I am thinking of doing would be a good move or is there any downsides to it. many thanks Steve
0
Comments
-
help.... any advise on the above please, as I have to make a decision before the end of the week.....Thanks Steve0
-
you could consult an adviser!0
-
I have consulted a mortgage adviser at the building society,but she couldn't give advice on existing endowment/pension.0
-
you need to see a financial adviser..not mortgage adviser0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards