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Mortgage Endowment Assigned
better21
Posts: 28 Forumite
Hi.
We have a Mortgage Endowment which is due to mature in couple of months. It is currently Assigned to a lender (NRock). However the mortgage is not due for redemption for another couple of years.
Is there any way I can get these funds to us and grow them in an high interest account before paying the lender off ?
The endowment is not enough to pay whole mortgage off anyway , so I was thinking it might be better to try to get a rate for that amount which is better than the mortgage rate.
Just wondered if anyone else had been in similar position and were able to agree with the lender to give them a letter of disclaimer/no interest.
Thanks.
We have a Mortgage Endowment which is due to mature in couple of months. It is currently Assigned to a lender (NRock). However the mortgage is not due for redemption for another couple of years.
Is there any way I can get these funds to us and grow them in an high interest account before paying the lender off ?
The endowment is not enough to pay whole mortgage off anyway , so I was thinking it might be better to try to get a rate for that amount which is better than the mortgage rate.
Just wondered if anyone else had been in similar position and were able to agree with the lender to give them a letter of disclaimer/no interest.
Thanks.
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Comments
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Is there any way I can get these funds to us and grow them in an high interest account before paying the lender off ?
Yes. You ask the lender to remove the assignment.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
What rate are you paying on the mortgage?
It will have to be very, very low to make it more attractive to invest the money, rather than use it to pay down the mortgage.
Do you have other plans for the money, instead of investing/repayment? If you do, you'll have to get in touch with the lender with a view to switching to repayment if you want the assignment lifted.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »What rate are you paying on the mortgage?
It will have to be very, very low to make it more attractive to invest the money, rather than use it to pay down the mortgage.
Do you have other plans for the money, instead of investing/repayment? If you do, you'll have to get in touch with the lender with a view to switching to repayment if you want the assignment lifted.
Current mortgage rate is 2.89 %
I suppose I need to do a comparison > how much can I make from the Endowment amount compared to how much I will save on the mortgage repayments.0 -
It will depend on how much money you have.
A cash ISA will attract around 3%, perhaps 3.5%, but you're limited on what you can put in.
Compare what you can get, carefully.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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Might as well pay the proceeds off the mortgage then, given the current state of savings rates.Current mortgage rate is 2.89 %0
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