Two endowment policies - what do do?

Ali-OK

EdInvestor wrote:

It depends: do you want the matter definitely sorted, or do you want to take a punt?

If you cashed it in now and used the surrender value to reduce the amount owed on your mortgage @4.99%, also increasing the mortgage payment by the endowment premium so as to overpay every month, your total return would be 27,954, which is near enough to the target amount.

You're not getting any premium return with this policy for taking a risk.

I would proceed as above and use the other policy to reduce your debt.

Hi Ed-Investor

If I used both to put towards my debt, I can be debt-free by March next year and then overpay by @ £800 a month on the mortgage and still save the max in my ISA. I'd prefer to kill the debt first to be honest.

Thanks again. You've been really helpful and I appreciate your views.

EdInvestor

If I used both to put towards my debt, I can be debt-free by March next year and then overpay by @ £800 a month on the mortgage and still save the max in my ISA. I'd prefer to kill the debt first to be honest.

I agree, and would do this myself. Had missed the point you are already switched over to a repayment mortgage.

It's entirely correct to clear expensive debt first, as you say. Good luck, looks like you'll be in back in fine fettle very quickly.:beer: