Endowment shortfall advice

mr_gilmore

Hi there - i wonder if anyone can give me some advice.

We're been told there will be a shortfall on our endowment and I'm wondering if it's best to start up an account to pay into monthly to save up, or to increase the monthly payments on our mortgage instead?

Thank you

opinions4u

What's the rate of interest on the mortgage?

Overpaying the mortgage would be my starting point in most cases, although a good regular savings account might be a better alternative.

mr_gilmore

not sure, will check tonight. Thanks for the tips

TBagpuss

As Opinions4U says, one issue is the interest rate - if you can get a higher rate on savings than you're paying on the mortgage, it makes sense to save (provided of course that you have the self-discipline to make the payments every month, and not dip into the savings!)

If you can't, or if you have any doubts about being able to stop yourself dipping into the savings, then paying it directly to the mortgage will be better (I assume that you are far enough in to the mortgage not to have any early redemption penalties to pay?)