Endowment Policy ??

liverpool200

Hi All
This is all my own stupid fault, down to a very expensive divorce and a recently finished IVA and i suppose head in the sand, but now my finances are almost back on track i have discovered that 45k of my mortgage is on interest only basis, i owe 111k on it.
The mortgage company want to put my mortgage from £495 per month to £700 to swap over to full repayment and finish it in 15 years, im wondering if i could take out a endowment or savings plan that would work out cheaper/best.
I always looked at the house as an investment and planned selling it when payed for and buying something smaller, which is still my aim as its too big for me on my own.
Sorry for the long post, but as you have guessed money's never been a strong point of mine.

Thrugelmir

liverpool200 wrote: »

The mortgage company want to put my mortgage from £495 per month to £700 to swap over to full repayment and finish it in 15 years, im wondering if i could take out a endowment or savings plan that would work out cheaper/best.

Unless you are prepared to take a risk/gamble that investments will perform particularly well. Then a repayment mortgage is the best option. Will give the certainty that every month the debt is decreasing. In these uncertain times security is worth pursuing.

DVardysShadow

If the £700/month is affordable then carry on - if an endowment will save you anything, it may not be a lot. But if the £700 is actually more than you want to pay, now is the time to execute your plan

liverpool200 wrote: »

I always looked at the house as an investment and planned selling it when payed for and buying something smaller, which is still my aim as its too big for me on my own.