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Endowment Mortgage help please
jolo_2
Posts: 22 Forumite
Hi,
I have a £30,000 mortgage with Northern Rock fixed at 5.29 % until June 2013. £19k is on endowment and £11k on repayment with 9 years left to run overall. My repayments are £213 a month. My endowment policy is going to make at the most £9k. I have been making overpayments of £35 a month and have so far overpaid £2400 approx, but there is no was I am going to be able to make up the shortfall, and at present my plan is to extend the period when I know exactly how short it will be. If i change my mortgage now the penalty is currently £1374.
I have a personal loan for £125 a month with 7 years left to run, the balance is approx £8500. I wondered if it makes sense remortgage so the full amount is changed to repayment - hopefully at a lower rate, although the mortgage payment would be higher, and to cash in the endowment to pay the loan off as the endowment would no longer be required, and also if I should be thinking about doing it now when the rates are so low, or wait until the end of the fixed rate deal. I have roughly estimated that my mortgage would be around £100 more a month, but i would save the loan payment of £125, the endowment of £28 and the £35 overpayment a month. My income will reduce in June 2013 so i am trying to do some forward planning.
Any advice gratefully received.
Jo
I have a £30,000 mortgage with Northern Rock fixed at 5.29 % until June 2013. £19k is on endowment and £11k on repayment with 9 years left to run overall. My repayments are £213 a month. My endowment policy is going to make at the most £9k. I have been making overpayments of £35 a month and have so far overpaid £2400 approx, but there is no was I am going to be able to make up the shortfall, and at present my plan is to extend the period when I know exactly how short it will be. If i change my mortgage now the penalty is currently £1374.
I have a personal loan for £125 a month with 7 years left to run, the balance is approx £8500. I wondered if it makes sense remortgage so the full amount is changed to repayment - hopefully at a lower rate, although the mortgage payment would be higher, and to cash in the endowment to pay the loan off as the endowment would no longer be required, and also if I should be thinking about doing it now when the rates are so low, or wait until the end of the fixed rate deal. I have roughly estimated that my mortgage would be around £100 more a month, but i would save the loan payment of £125, the endowment of £28 and the £35 overpayment a month. My income will reduce in June 2013 so i am trying to do some forward planning.
Any advice gratefully received.
Jo
0
Comments
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You havent told us anything about the endowment. So, its impossible to make comment. Give us the details and an opinion can be offered.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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what details do you require - Im sorry I thought the figures would be enough.0
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Who is the endowment provider? How is it invested (unit linked or with profits, if unit linked what funds)? What is the cost of replacement life assurance? Does the endowment have any mortgage endowment promise? (if so, how much)? What are the example projection figures from a recent statement? what is the current value and the surrender value? What is the monthly payment?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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The policy is with Phoenix Life, its with profits, it matures on the 28th Jan 2019 the premium is £27.84 a month and the illustrations as of March 2010 are :-
Projected final amount at 2.75% each year £8550, at 3.75% each year £9260 & at 4.75% each year £10,000
I have no idea about a mortgage endowment promise or replacement life insurance - do you have to have life insurance?
The surrender value as at todays date is £48200
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