My mortgage is weird! Advice please!

EdInvestor

It is possible to make a reasonably educated guess about how WP endowments at different providers will perform.The regulators' figures are not helpful though, they are standard for all companies.One has to analyse the performance of the specific WP fund the money is invested in.

If the OP wants further info, he needs to provide info about the policy.Otherwise there's no way of knowing whether what his advisor says is any good or not.

The performance of an endowment is only very marginally related to what happens to interest rates.

Mr_helpful

Did the OP say he had a WP endowment? or are we jumping to conclusions again

EdInvestor

It's unlikely the advisor would be going by a 4% growth rate for a unit-linked endowment.

phil7445

Thanks guys for your help, although it seems to have gone away from my original question which was about making extra payments, which has been cleared up for me. :-)

JoeK_3

Phil, overpay on the interest only part.

Try to overpay by the shortfall amount
Example: Shortfall £17,000
Term left: 11 years
Shortfall per annum: £1,545,46
Shortfall per month: £128.78

You should consider remortgaging regularly, as the savings made could be used to overpay the mortgage amount.

JoeK

phil7445

That is an interesting point Joe. Although I don't think I can differentiate between the 2 amounts as they are the same mortgage amount.

Ok here are some figures (aprox as I don't have my paperwork in front of me).

£56000 left to pay on mortgage. 11 years and 11months to go. £30000 is interest only and £26000 is repayment.

So I think that means you are suggesting pay £181 a month overpay? I am not sure I can afford that though, but I guess every pound counts. Although I need to double check when the interest is calculated. Hopefully daily.

Thanks.

phil7445

Also I always have remortgaged regularly. Although when my last fixed rate ended in December, as I am planning to move this year, my advisor said I should get a non tied in mortgage, which would be variable, as if I want to borrow more money and I was tied in I would have to use the same lender and the rates may not be the most favourable at the time. It is annoying as the rates have gone up twice since December. I am with the Woolwich.