Bank loan, credit card or what to pay mortgage shortfall?

davisroland

I have an interest only mortgage that ends in June 2011. As with many of these mortgages, when my endowment policy expires at the same time, there will be a shortfall, and I am looking for the best way of dealing with it. The policy was taken out too early to seek compensation.

It’s impossible to say exactly how much it will be until the day, but I think the best estimate of about £5000 is about right. Because it’s a relatively small sum I haven’t worried unduly about it, but I guess it’s time I made arrangements to cover it. The Bradford & Bingley BS can’t offer any solutions - don't do loans since they were taken over by the government.

I could take out a bank loan (the payments would be much less than I have been paying on the mortgage). However there is a possibility that I might be in a position to settle the loan well within the loan term. From experience that involves paying most of the interest as well.

I also have more than £25k of available credit on credit cards (my credit score is good), so I could easily settle the mortgage that way (but very expensively!)

I can’t help feeling there might be a more flexible and less expensive approach to this problem. Can anyone advise?
Thanks

dimbo61

Have you looked at First Direct offset tracker deals and borrow a bit extra which you then pay back into the offset account, low fees I think

davisroland

I'll have a look into that - thank you