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C & G Mortgage/ Endowmnet

I currently have fixed rate till 2013 at 6.54% with ERC of 4% till Jun2011. £28,000 on Interest, £11,000 on repayment with term ending Apr 2016.
Surrender value of endowment currently at £28,000 with shortfall predicted L10,400 M7,000 H2,700 Managed 2EL,with profits 3EL
and with profits 3bEL. we pay £148. a month
(it was meant to pay off £55,500)
Also mortgage due to end Apr 2016, but endowment due to end Nov 2016.
Should we cash in now and pay off £28,000 Interest part or carry on paying?

Comments

  • dunstonh
    dunstonh Posts: 121,941
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    You will suffer 4% ERC on the payment and the endowment has been making more than that in recent times. Indeed, your one looks quite strong and a good chance of hitting target.

    It may be better to wait until you are free of ERC.
    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.
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