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What to do pay it up or not
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dwf49
Posts: 14 Forumite
Hi All
Sorry if this is a daft question We have a morgage which will have 3 years to run from Dec 1st (repayment) when we come out of our deal we also have a old endowment which we froze when we went to repayment its worth £17,857.06 and would pay off what we owe the endowment has gone up aprox £700 in the last 6 months we have been in to see the bank and our repayments from dec on the morgage would be £478 per month on the standard rate (for 3 years) maybe it will go up and down a bit we would like to pay it off because we could then afford a small loan £5000 for a new car (£149 per month for 3 years from nationwide) dont understand the endowment but it says mixed fund so many units any help/advise would be great thanks
Dave
Sorry if this is a daft question We have a morgage which will have 3 years to run from Dec 1st (repayment) when we come out of our deal we also have a old endowment which we froze when we went to repayment its worth £17,857.06 and would pay off what we owe the endowment has gone up aprox £700 in the last 6 months we have been in to see the bank and our repayments from dec on the morgage would be £478 per month on the standard rate (for 3 years) maybe it will go up and down a bit we would like to pay it off because we could then afford a small loan £5000 for a new car (£149 per month for 3 years from nationwide) dont understand the endowment but it says mixed fund so many units any help/advise would be great thanks
Dave
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Anyone any ideas
thanks0 -
i don't relly understand the question. will your mortgage only have three years left to run? or is it a three year deal with some mortgage to pay when the deal finishes? would the endowment payment cover the entire mortgage arrears?0
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You dont give the interest rate on the mortgage now or from the 1 dec 2010 nor do you give the interest rate of the loan ?
Now you have an endowment worth £17,857 which you say would clear the mortgage.
There is no point in borrowing £5000 from Nationwide at 8/9/10% over 3 years when the SVR of you mortgage is likely to be 5% at most.
So when you cash in the endowment use some to buy the car and the rest to clear a large part off the mortgage.
If you keep the mortgage payment the same you will soon have the mortgage cleared.0
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