New Mortgage

nib43

Hello

My wife and I are currently paying 7.5 % interest on our endowment mortgage. Although we are planning to move house in the next year or so we would like to remortgage the current house in the meantime to reduce the monthly payments.

We also have 3 endowment policies relating to this mortgage all of which are falling short. We managed to get money back on one of these policies and that money is in a savings account.

Should we consider the endowment situation when remortgaging?

What would be the best 1 - 2 year deal to switch to at this time.

Many thanks

Norval Barclay

Mr_helpful

You should take into account the endowments but do remember the effect of any shortfall will be reduced by inflation ie the shortfall in say 10 yrs time will not seem as bad as it does now hopefully. If you are planning to move you want either a mortgage that has no redemption penalty or one that is portable. With portable ones however you can only take the existing terms with you so if you need more money at the move the extra may not be such a good rate.
I think there is a good case her for an offset if your risk profile accepts it. You could offset the endowment money.