Would like some advice

billydino

Hello,

I don't have a mortgage in my name (its the missus's house)

She has 40k outstanding and is paying interest only at around £178 per month. I've never really looked into it as its hers but looking at her balance sheet for the last year shes accrued an extra penny on the 40k.

She has an endownment which is set to pay out 13k (a massive shortfall). She re-did her mortgage a long time ago when she earned very little so she could manage.

Sorry if it sounds stupid but I have never had a mortgage and the missus normally closes her eyes to money.

I plan to organise to see a mortgage advisor but in the meantime does anyone have any advice?

Thanks,

Thrugelmir

Start making capital repayments on the mortgage to negate the shortfall.

billydino

Thrugelmir wrote: »

Start making capital repayments on the mortgage to negate the shortfall.

Would it be worth cashing in the endowment (current worth shows 8k) if such a thing is possible and paying that off the mortgage?

I'm not really sure if she'd lose out by cashing in early? or whether its worth continueing it till the end? Surely the interest on the mortgage would negate any interest on the endowment?

CloudCuckooLand

Some endowments will improve when the figures have filtered through from the 2010 upswing in the stock markets.

For now, switch to a repayment mortgage, or make overpayments.

Thrugelmir

billydino wrote: »

Would it be worth cashing in the endowment (current worth shows 8k) if such a thing is possible and paying that off the mortgage?

I'm not really sure if she'd lose out by cashing in early? or whether its worth continueing it till the end? Surely the interest on the mortgage would negate any interest on the endowment?

How long does the endowment have to run? Making the policy paid up is another option.

billydino

Thrugelmir wrote: »

How long does the endowment have to run? Making the policy paid up is another option.

Another 8 years. What does that mean?

Thrugelmir

billydino wrote: »

Another 8 years. What does that mean?

You pay no further premiums. The policy value is frozen at "todays" value. However it will continue to accrue annual bonuses and receive the terminal bonus if one is paid.

The premium that was paid towards the endowment could be used to repay the mortgage.

May be worth speaking to the lender and switching to a repayment mortgage. At the same time possibly even extending the term to make the monthly repayments affordable.