changing from interest only mortgage

cyrilthesquirrel

I have a mortgage with about £100k on interest only and £7k on capital and interest,I have 3 endowment policies which were supposed pay off £100k in about 2014 when current 5 year fixed rate deal ends,however there is a £37k shortfall predicted on the £100k.(You may have guessed 2 of the policies are with Equitable Life).
Should I convert more of the mortgage to capital and interest and reduce the amount on interest only by making extra monthly payment
OR
is it better to leave it mortgage as it is and save the same amount each month in a bank account and use the money in the bank in 2014 to go towards paying off the £37k defecit.
I anticipate that I would have to add a bit from existing savings to totally clear the defict in 2014 no matter which of the two routes i take.

getmore4less

What are the interets rates?
Any penaties for overpayments?
Whats the full term?

cyrilthesquirrel

interest rate is 4.69% fixed till June 2014
Exit fee is £7,000
no exit fee or any fee to change composition of mortgage to put more on capital and interest and less on interst only.

Thrugelmir

Overpay the mortgage by as much as you can afford and are allowed to do.

Unless deposit rates rise signficantly before your fixed period expires.