End of fixed term on mortgage-what next?

ray1971

Just checked with my lender and the new rate from next year will save me about £450 per month, so any advice on endowments appreciated.

jamesd

Endowments are an obsolete tax wrapper and not really available much these days. The main replacement is investments within a stocks and shares ISA.

There's no need to make capital payments on your mortgage and the expected result of doing so instead of investing is to make you poorer because the main UK stock market since 1978 has averaged 10.5% plus inflation, before fees over all five year periods.

However, when it comes to an appropriate time to remortgage it's worth considering whether you might be able to make more by paying off some capital to move into a lower loan to value band. It's not always the case that lower LTV makes you better off when it's compared with investing as an alternative.