Endowment & tracker mortgage - quickest way to pay them off?

Pat_t_2

Hi can anyone suggest the best way to go about paying off my mortgage the best & quickest way. Current term 13 years paying at present £226.00 monthly.
I have 50k on endowment mortgage and 58k on a life tracker at 0.69% above base rate.
Your advice will be greatly appreciated.
Pat

opinions4u

I'm assuming that you are paying 1.19% on the whole mortgage and can afford to overpay.

You can get higher savings rates, even after tax. While this remains the case, pile the spare cash in to savings. Keep an eye on rates and when the mortgage rate exceeds the savings rate, then is the time to move the money from savings to mortgage.

Cash ISAs such as Principality BS, Halifax etc may be the best starting place, while www.theaa.com/savings 2.8% account is also useful.

But keep a constant eye on what rates are - if they change and you don't make yourself aware you could lose out.

getmore4less

What your mortgage £58k or £58k + £50k

The reality is that to pay a mortgage off more quickly you just throw more money at it.

Fine tuning can make it a shorter still but the biggest benifit is the overpayment/saving in the first place.

eg £58k 13y(156months) @ 1.19% .

£402pm repayment

overpay by £100pm reduces the term to around 123 months

Save £100pm @ 2.8% pay normal £402 on the mortgage term reduces to around 120 months

So overpaying reduces by 33months and fine tuning another 3 months.
(might be some tax on the savings unless you can use ISAs)

Also worth reviewing the endowment performance.

Thrugelmir

Maybe worth freezing the endowment (technical term is to make it paid up), and use the premium payments to pay down your mortgage instead.