Moving from Endowment to repayment mortgage

pictureshow

We currently have a repayment mortgage with £30k on endowment. We want to move to a full repayment as what will come from the endowment is negligable and will not cover anywhere near the £30k.

To move to a full repayment loan we would need to have a mortgage for approx. 220k.

We have approx. £60k in equity in our property and our joint annual salary is £50k. Can equity within property count towards what you can borrow for a remortgage?

Any views would be welcome.

dimbo61

Why do you think the property is worth £280K
Can your current lender offer you a good remortgage deal for the full £220K
How much is the endowment worth today and how long have you had it ?
Plenty of good deals if you are out of a fix ?

maisie1234

Yes, the key is what your endowment is worth. It wont be worthless. A number of years ago we took some advice about my partner's £55k mortgage and the endownment not paying out.

We converted £25k to repayment so effectively owned £30k. The endownment paid out last month at £43k. So, we have paid back £30k off the mortgage and put the other £13k in premimum bonds ready to pay the school fees when we run short.

pictureshow

Thanks.
Estimated property price from online Nationwide & Zoopla - quotes were £286 & £296 respectively so I've used the worst quote of the 2 rounded down, but its a difficult one as no houses of this type have been sold in the last 7 years so there is no recent benchmark.

I'm not in any fixed mortgage at the moment. Its just finished so on SVR but planned on shopping around as deals with existing building society didn't seem that good but wanted an idea if was even trying to move to full repayment.

Endowment - when it matures if we could move to full repayment we would use endowmnet to clear credit cards.

We both have good credit ratings but do have quite a bt on credit cards at moment.

Let_Us_See

pictureshow wrote: »

To move to a full repayment loan we would need to have a mortgage for approx. 220k.

Don't understand your reasoning as converting your IO borrowing to repayment doesn't alter borrowing, only your method of payment.

Thrugelmir

pictureshow wrote: »

We both have good credit ratings but do have quite a bt on credit cards at moment.

The amount of unsecured debt you owe will impact on whether a lender will consider your application at all, and secondly the maximum amount they will advance.

May be beneficial to tackle the cards rather than switching the mortgage.

Personally I would reconsider having £13k in premium bonds. As the possibility of a high return is very low. Whereas repaying more expensive debt will free up cash.

dimbo61

think it is maisie1234 who has the £13K in premium bonds