Maturing Endowment and Mortgage Overpayments

TonyM19

My 25yr endowment policy with Standard Life is about to mature this month. It was originally due to cover a £23k interest only mortgage with Halifax, but I converted part of my mortgage to a standard fixed repayment mortgage with Nationwide about 6/7 years ago. The endowment now has to cover £13k (and looks like it will get about £15.5k). When I remortgaged, my mortgage and endowment got out of sync and the final mortgage repayment is due in April 2011 (together with the £13k). I will have £15.5k to invest for 4 months. I can get £10k of this into our cash ISA's. Nationwide will allow me to overpay my mortgage by £500 per month. I'm getting 2.5% in my ISA and my fixed mortgage is 4.79%(seemed a great deal at the time ). Can somebody reassure me that this is a sensible route for me to follow? Presumably, I will owe less than £13k - 4 x £500 in April?

getmore4less

What deal do you get how long was the fix?

TonyM19

We fixed it about 6 or 7 years ago (before interest rates tumbled) until the end of the mortgage. We have 4 more payments to make. I just wanted to know if it was sensible to overpay by the max amount Nationwide will allow and whether I would be better off doing that rather than saving the £2k for 4 months.

Thrugelmir

TonyM19 wrote: »

We fixed it about 6 or 7 years ago (before interest rates tumbled) until the end of the mortgage. We have 4 more payments to make. I just wanted to know if it was sensible to overpay by the max amount Nationwide will allow and whether I would be better off doing that rather than saving the £2k for 4 months.

Continue to overpay by the maximum allowed. Unless Nationwide will agree to early settlement without incurring an ERC.