What to do with endowment maturity?

eaustin

I have an endowment that matures today from the first mortgage I took out 25 years ago. It was meant to yield £35k, actual maturity £30k. The straight forward answer would be to repay towards my current mortgage but I wanted the advice of some of the experienced people on this board and what they would do in my current situation.

I currently have a Woolwich Offset mortgage and am paying 0.75% over base i.e. 1.25% The current balance is £128k; £40k interest only (I have a further endowment maturing later this year) and the balance on a repayment mortgage to be repaid December 2024.

Me and my OH currently have the following cash assets:
Me ISAs £21k
OH ISAs £11k
This year's allowances are all utilised and I will be transferring the full amount of next year's allowance into our Nationwide flexclusive e-ISA 4.25% until 31 October.

ME £15k invested in 48th issue NS&I

My OH has £35k in a Santander e-saver earning 3.2% until June 2013. My OH is a basic tax rate payer soon to be a student again for 6 months whereas I am a higher rate tax payer.

We also have £65k (current value) in a moderate-growth investment fund.

The question is therefore what would people advise I do with the £35k that matures today?

If anyone requires any further information please ask. I look forward to your replies.