Endowment not paying enough

james2012_2

I have an endowment that matures in July,

opinions4u

james2012 wrote: »

I have an endowment that matures in July, however it will be £4,000 short to pay off my mortgage.

This shouldn't be a surprise.

The mortgage term actually ends in Jan 2012, due to a mistake being made when I remortgaged a few years ago.

It was probably the right thing to do. If the term had ended in January 2011 how would you have repaid the debt?

So will I have until Jan 2012 to pay off the shortfall or will the mortgage company (Halifax) want it paid off when the endowment matures?

You should have until Jan 2012. If needed, I'd expect you to be able to negotiate an extension to this.

The mortgage is a tracker mortgage and am only paying 1.15% interest.

One option would be to take the endowment proceeds in July, stick them in a savings account paying nearly 3% (e.g. AA, Post Office, West Brom BS etc), carry on paying the mortgage at the lower rate, plus something to bridge the shortfall, and then withdraw the endowment proceeds in Janaury 2012 to clear the debt.

james2012_2

This shouldn't be a surprise

It isn't.


Never thought of that.

dimbo61

Why not keep the shares and try to pay off the £4K between now and Jan2012 thats £400 extra each month.