Received endowment cheque, Do I pay straight to Building Society or reinvest?

C_FELLOWS

I have just received my endowment cheque after 25 years. Yes, lost thousands but took the gamble and no lump sum to invest in the future as advised 25 years ago just got to take out new mortgage for value left to pay on mortgage. Do I pay directly back to existing mortgage. Are they going to take a piece of it too? Or do I not pay it in and invest to make up money to pay off at a later date? Dont want to loose any more to banks.

hcb42

More info needed I expect.

how much is OS mortgage/cheque/the shortfall/your age/income. Did you ever switch to repayment when you received all the warning letterS?

I would "think" caution would apply here, in that you would pay off a significant chunk of outstanding capital you owe on your mortgage, and need a strategy for the gap...but I could be wrong there of course.

C_FELLOWS

Original endowments totalling £75k. Got a repayment of £25k and a cheque left after paying off cc bill of £50k. Late 40's
Prop get an ISA but dont know how much and put rest back in mortgage account but will prop have to do new mortgage for new amount?? Thanks C

hcb42

I am a bit lost still...

I have read that you initially borrowed £75K on an endowment basis, and converted £25K to repayment, but the endowment has paid off £50K cheque in your hand? Meaning you still owe a percentage of the £25K which you are repaying?

you could either pay it off or put it in a new offset mortgage and make sure you pay enough for the £25K but I personally would feel better knowing I had cleared £50K at least in that situation, and you have plenty of years in you to pay off the balance, luckily.

whether you need to get a new mortgage depends on what the final repayment date is of the original mortgage...esp the repayment part..?