how to pay of endowments on mortgage this year

fishcake5_2

Hi all, not to sure of the best way to do it, I have 3 endowments finishing this year, one each in june, aug and december the 47000 mortgage doesnt need paying in total until sept 2013, I have a total projected shortfall of 18000 which i have been saving seperately in an isa.
My question is do i keep everything together in one account until sept 2013 or do I pay of lump sums as they come in am so desperate now to be mortgage free. thans for any advice.

Voyager2002

Ask your mortage provider. Many mortgage contracts impose extra fees if you make payments above certain limits during the life of the mortgage (ERCs), so it makes sense to keep your payments below these levels.

Thrugelmir

What rate of interest are you paying on your mortgage?

fishcake5_2

hi, we did well there changed to tracker just as they dropped so 0.5 about £58 a month. thanks

Thrugelmir

fishcake5 wrote: »

hi, we did well there changed to tracker just as they dropped so 0.5 about £58 a month. thanks

I would pay the mortgage off at the end of the contract term. Once you've used up your ISA's allowances. Aldermore Bank offer some reasonable rates on instant access money

opinions4u

If the mortgage rate is 0.5% then bang the money in to easy access account.

ISA allowances via The AA / West Brom BS. The rest in to an account such as ING paying 3.10%.

Keey an eye on the rates - make sure you stay on top of changes / bonus rates finishing.

If you have £25,000 earning 2% more than the mortgage rate that's £500 a year for you.

I'm assuming this isn't a staff mortgage where there's an addiitonal tax liability.

fishcake5_2

Thanks guys, yeah thats what hubby wants to do, I just want to have done with it just feel like the banks are so unpredictable and took their advise 25yrs ago hence £18,000 shortfall, but your maths does seem to add up.