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Part endowment/Part repayment mortgage with endowment maturing
jojw
Posts: 1 Newbie
Hi
My partner and I have a part repayment (£85k) part interest only (£50k) 20 year mortgage which was started in 2006. The interest only part of the mortgage is to be funded by 3 of my partner's endowments which were taken out at various times when he moved home before he met me. The first endowment is due to mature next month ie well before the end of the mortgage, the second in June and the third next year. There is no charge for overpayments to the mortgage with Alliance and Leicester. Should the endowment money be used against the mortgage which currently has an interest rate of 0.99% above Bank of England rate immediately or should the money be put into savings. My thoughts are that it should be put straight into the mortgage but would be interested in your views.
Thank you for reading.
My partner and I have a part repayment (£85k) part interest only (£50k) 20 year mortgage which was started in 2006. The interest only part of the mortgage is to be funded by 3 of my partner's endowments which were taken out at various times when he moved home before he met me. The first endowment is due to mature next month ie well before the end of the mortgage, the second in June and the third next year. There is no charge for overpayments to the mortgage with Alliance and Leicester. Should the endowment money be used against the mortgage which currently has an interest rate of 0.99% above Bank of England rate immediately or should the money be put into savings. My thoughts are that it should be put straight into the mortgage but would be interested in your views.
Thank you for reading.
0
Comments
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The bottom line is can you invest it safely with a rate higher than you are paying?
If so, then it is financially beneficial not to pay it off.
I suggest you see what you can get, do your sums and see what answer you get.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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