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Interest only mortgage help please
Bradders1000
Posts: 2 Newbie
Hi,
Does anyone out there have any advice/know of where etc that I might be able to start (what was once called an endowment policy) to pay off my interest only mortgage in about 18 years?
I do no want an insurance policy - more of a savings plan?
I am in the process of trying to remortgage and go back to a repayment mortgage but I want to look at all options financially?
If anyone has been in a similar position or knows of a reliable company to talk to, I would be really grateful to know.
Thanks in advance.
Does anyone out there have any advice/know of where etc that I might be able to start (what was once called an endowment policy) to pay off my interest only mortgage in about 18 years?
I do no want an insurance policy - more of a savings plan?
I am in the process of trying to remortgage and go back to a repayment mortgage but I want to look at all options financially?
If anyone has been in a similar position or knows of a reliable company to talk to, I would be really grateful to know.
Thanks in advance.
0
Comments
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Go for a repayment mortgage. Any other investment option carries a degree of risk and therefore subject to the whims of the market. So only take this route if you can afford to gamble.0
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Add in to that, it will be unlikely any new lender will allow this as a form of repayment vehicle and therefore when you come to the end of your latest mortgage deal your options will be limited.
You cannot beat going onto a repayment, hence why all the endowment mis-sale issues over years gone by..I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
An endowment policy has a life insurance element in it.Bradders1000 wrote: »Hi,
Does anyone out there have any advice/know of where etc that I might be able to start (what was once called an endowment policy) to pay off my interest only mortgage in about 18 years?
I do no want an insurance policy - more of a savings plan?
I am in the process of trying to remortgage and go back to a repayment mortgage but I want to look at all options financially?
If anyone has been in a similar position or knows of a reliable company to talk to, I would be really grateful to know.
Thanks in advance.
You could keep your interest only mortgage and save into ISA's or other similar savings options and in 18 years just cash them in and make a lump sum payment to your mortgage. However, finding ISA's that pay a higher interest rate than what you are charged on your mortgage is a challenge.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
whats your cuurent mortgage deal, rate, term etc.
it might be worth keeping0
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