Overpayment help

Tonyp

Hi everyone, i am trying to work out my over payment plan, we currently owe 55,000. We have 8.5 year left to go. Our monthly payments are £245 but we are paying £500 a month. We have an endowment fund valued today at £19700. If i use a mortgage calcu
Ator can i just subtract the £19700 from the £55000. Any help

happycamel_2

It'll never be an exact science because your endowment value may change by the end but I would do the calculator based on £55k because that is the amount attracting interest then put in your payment and OP amount then look at the table that shows the annual balance and take the point it hits £20k as being roughly when you are likely to be mortgage free.

lvm

I'm no expert but I'm almost certainly sure the answer would be "no".

I've plugged the details in and from your figures would say that you'd have about £22k left to pay when the mortgage ends. The endowment would pay all/some of this. These figures are based on an interest only mortgage...is that right?

If you deducted the £19k from the £55k then the calculator would assume you're not paying interest on the £19k which isn't correct.

Hope that helps!

tonye60_2

44000 is interest only, the remainder is repayment

HelenDaveKids

Have you considered cashing in endowment early and paying it straight in? I rang up for my endowment cashing in figures, then using fairly crude calculations I worked out I would be better off by a £2000 ish by cashing in immediately (when worked out how much interest I saved and the policy payments into account). Im in a fixed period and had 3 policies, so been cashing in slowly one at a time.

I know theres an element of risk either way but I so don't trust my endowment company as far as I could pick them all up and throw them as my shortfall from original target is absolutely gob smacking,

tonye60_2

Thanks for your advice, i will contact the endowment companty to get a true value