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advice needed please
lady1964
Posts: 978 Forumite
Hi All,
Hope I'm posting this in the right forum but looking for some advice regarding our mortgage & endowments.
My OH has just resigned from his job and I'm being made redundant in July. We have an off-set mortgage and have been overpaying for a few years now. The plan had been to continue over-paying so that it would be paid off in approx 4 years, and to continue paying the endowments which are due to finish in approx 8 years, which would mean we'd have a lump sum of approx £50k.
We've contacted both endowment companies and if we surrendered them, we would be about £4k short on the amount we owe on our mortgage. We could add this amount out of our savings and reduce our outgoings by £1,200 per month.
Alternatively, we could reduce our mortgage payments down to £50 - which is the actual mortgage payment per month - but keep paying the £200 costs of the endowments, still making a very significant saving on our outgoings. We could then increase our mortgage payments when my OH has another job.
We have enough in savings to pay the bills etc for a significant amount of time but as we all know jobs can be quite hard to come by, we need to plan for the long term.
Our initial thoughts were to pay off the mortgage but now we're thinking that we could keep paying £50 + the endowments and see where we are in 3 or 6 months time, we would still have the option of paying off the mortgage then if my OH hasn't found another job.
Any thoughts on the above would be very welcome, thank you
Hope I'm posting this in the right forum but looking for some advice regarding our mortgage & endowments.
My OH has just resigned from his job and I'm being made redundant in July. We have an off-set mortgage and have been overpaying for a few years now. The plan had been to continue over-paying so that it would be paid off in approx 4 years, and to continue paying the endowments which are due to finish in approx 8 years, which would mean we'd have a lump sum of approx £50k.
We've contacted both endowment companies and if we surrendered them, we would be about £4k short on the amount we owe on our mortgage. We could add this amount out of our savings and reduce our outgoings by £1,200 per month.
Alternatively, we could reduce our mortgage payments down to £50 - which is the actual mortgage payment per month - but keep paying the £200 costs of the endowments, still making a very significant saving on our outgoings. We could then increase our mortgage payments when my OH has another job.
We have enough in savings to pay the bills etc for a significant amount of time but as we all know jobs can be quite hard to come by, we need to plan for the long term.
Our initial thoughts were to pay off the mortgage but now we're thinking that we could keep paying £50 + the endowments and see where we are in 3 or 6 months time, we would still have the option of paying off the mortgage then if my OH hasn't found another job.
Any thoughts on the above would be very welcome, thank you
0
Comments
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Why not keep your savings for the next few months until your OH has a new job and just keep paying the normal bills.
Wait and see what happens with your job and any redundancy payout.
If you have over £16K in savings you will get little if any help from the benefits people.0 -
Why not keep your savings for the next few months until your OH has a new job and just keep paying the normal bills.
Wait and see what happens with your job and any redundancy payout.
If you have over £16K in savings you will get little if any help from the benefits people.
Thanks very much, OH won't get a redundancy payout but I will in August, about 3k. We do have over £16k in savings so we know he can't claim JSA, but we know I can if I don't get a new job prior to or after redundancy.
Thanks again.0
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