replacement for endownment policy

Kennys1

we have not long sold our endownment & repaid a sum off our mortgage, however we still will have a 22k amount left to pay after 7yrs has anyone got ideas for us to join some savings plan to get what we will have left, our mortgage is on interest only. We cannot afford repayment !!!!. We have also let our daughter 24k out of equity she is 25yrs and in full time work could you also include her in responses.......Many thanks

dunstonh

Converting to repayment would be cheaper than setting up an ISA as a savings plan with a sensible target growth rate.

Otherwise, you end up taking a risk on the shortfall not being met. With hindsight, it would probably been better to keep the endowment running but alter the funds. That would have saved on a surrender penalty.

dougk_2

If you can't afford to convert to a repayment there is not likely to be a way of saving the same amount in order to repay the capital at the end of 7 years.

All i can suggest is you convert to a repayment mortgage but extend the term to say 10 years from your current 7 to allow for lower monthly payments.

The other thing is to ask your daughter to start paying the amount lent back (if she can) at say £100 to £200 a month to help pay some more capital off.