Endowment Shortfall - Best Option to top up

morrow56

My 2 endowments are just about to mature approx £5,000 short of required amount.

What is my best option to make up that shortfall. ?

What will my building society (A&L) offer at maturity when I am £5,000 short

Should I be thinking of extending (what will that cost with them), an overdraft, 0% credit card or loan?

Thanks for any forthcoming advice

PS I have been overpaying for the past year but still looking at a shortfall cause the mortgage is higher than our endowments

opinions4u

The most likely outcome is that A&L will allow you to extend the mortgage on a repayment basis.

Talk to them!

(don't borrow the money elsewhere though)

morrow56

Thank for swift reply

It the amount is about £5,000 what sort rate will they offer and will they charge an arrangement fee - my 5 year fixed at 4.54% finishes when the mortgage matures on Nov 23

VIGILANT22

http://www.alliance-leicester.co.uk/mortgages/existing-customer-changing-deal.aspx

morrow56

Thanks Vigilant22

That looks quite promising - just need to find out the interest rate they will charge now

getmore4less

Give them a call, best not to wait till Nov

You can probably just extend the term on the current deal now for nothing or low cost, consider changing a bit to repayment now, follow on rate is probably in the T&C of your deal(current deals are SVR 4.2%).

On <£5k that wil be left interest rate is not that critical costs are.