mortgage endowment

pelicanos_2

my endowment is due to mature on the 1st of January it looks like it will be short not by much can I just get a loan to pay the shortfall and then the house will be mine or do I have to pay it off right away. I don't want to use my savings if I can help it

pjread

Personally, if you've got savings I'd pay with them then replenish with whatever you would have paid for the loan with? Seems a bit silly paying interest to borrow money you have available, unless all is tied up, and if you can afford repayments you can afford to top back up (worst case, borrow less later if you really have to?)

Annisele

You're supposed to repay your mortgage when the term of the loan expires. Sometimes that's at the same time the endowment policy matures, but not always - it's possible for the mortgage term to be months (or years) longer than the endowment term.

If the term of your mortgage is also ending in January, then your lender will be very likely to agree to let you extend the term and convert the shortfall to repayment. But as pjread says, you'll probably be better off just repaying the mortgage in full from your savings. The exception would be if the post-tax return you get on your savings is higher than the interest rate your lender offers for a term extension.