Is this possible?

cazziej

Haven't got a clue about finance and mortgages and such things, so I may be asking a stupid question, but here goes.

I have a £24,500 mortgage with 2 endowment policies active to pay the mortgage off. One endowment is up in March 2009 and the other is up in November 2009, so less than 3 years left on both of them.

The monthly payments on both are not very high, £16 on one and £21 on the other.

My question is this: If I wanted to pay off the £16 x 27 months, and £21 x 35 months up front (approximately £1200), would this mean that my endowments were paid off and so I could cash them to pay my mortgage off? Would I still get the excess projected so far?

Any help would be much appreciated.

Thank you

Carol

silvercar

I think your talking of making all the contributions up front as opposed to paying off the policies. Whether the admin depts of the life companies could cope with this is something you would need to ask them.

It wouldn't mean you could cash in the endowments early. They need to go to term to benefit from the full length of time that the monies in them are forecast to be invested. If you cash them in early you would lose any terminal bonus that is included in the figures. You would also lose out any life assurance that comes with the policies.

cazziej

Thanks Silvercar.

Guess its a no no then!

Best wishes

Carol

yanchuga

I think it's possible

kenshaz

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