Mortgage and endowments out of step

BarryW

My interest only mortgage is due to be repaid next July. My current mortgage scheme ends at the end of this year.

The mortgage is funded by two endowments and other investments. There is a shortfall so I will be looking to extend to allow the other investments to pick up and also we will look to downsize in the next 5 years. (I am early 50's and employed - there is healthy capital in the house).

The problem I have is that the two endowments mature this year - one already has - so I have repaid the max I can on the mortgage without penalties. Somewhere in the last 25yrs we have got a year out of step. Normally with zero savings, will have a reasonable sum tucked away until the end of the year.

Doesn't sound like a problem.....

But we are also applying for student finances for two of our children this year and don't want these "savings" to be taken into account - as they will disappear at the end of this year at the end of the current mortgage.

It is going to be tough enough putting two through Uni without this false bump over stating our wealth and the very time we are trying to be get their student finances sorted.

Any ideas on possible options so that this money goes where it was intended - into repaying the mortgage?

wodgerdodger

Presumably these policies were not assigened to the lender which would mean they have first call on the funds...not you?

BarryW

That's a good point - but the money has been paid directly into my bank account.

I expect it will be the case next year when the capital is expected to be repayed but as we are a year out of step for the monet I can't repay anymore without incurring charges above what I will paying back in interest anyway.