Endowment or repayment pay off

Mbro44

Hello, as the interest rate on ISA's are terrible at the moment I am thinking about overpaying on my mortgage. I have half endowment and half repayment. Is it better to over pay on the endowment interest only account or repayment account? They are both the same rate so would it make any difference?

Thanks
mbro44

bigadaj

Are you happy that the endowment will hit the target you require, many people have converted to repayment only and looked on any endowment payotj as a bonus.

Are these separate accounts, as overpaying a mortgage should simply reduce the overall amount owed. You may have to specify that you want the term reducing or the payments reducing and see what your lender will do.

Also don't forget that if you close an isa then that allowance is lost in the future, many people have low mortgage rates are intentionally maintaining these and were either saving at higher rates or have invested the money, the latter obviously comes with some risk.

Mbro44

I originally had an entire endowment mortgage but changed it 4 yrs ago to half repayment and half endowment to cover the shortfalls on the endowment. I will be trying to reduce the term above all else. My current mortgage was fixed 4 yrs ago at 4.69 which has been a bit annoying as the rates are so low. It finishes in July when it should come down but the excess I will use to over pay and reduce the term even more.