Endowment mortgage as a bridge to pension?

bratley

I am 51 and facing redundancy. Payoff can be stretched to 53.
At 55 I am in for a reasonable pension including large cash sum.

I am thinking that if I can take an endowment mortgage NOW while still employed and then just stash it away,I can use it from 53to 55 when my redundancy runs out then pay it off with my pension cash.

Feels like a plan but can I get a mortgage just to put under the mattress?

If I wait until I really need it I may be unemployed so not be able to access bank money

bigadaj

Don't know why you reference an endowment mortgage, they aren't available any more and obviously had a torrid time over the last twenty years.

Lump sum from a pension is a potentially valid reason for an interst only repayment vehicle, the other issue is affordability of repayments. If you are aware of redundant then it would be disingenuous or lying to apply now, however you could try it. It might get pulled up if the lender asks for inflation from your employer.

Probably best asking on the mortgages and endowments board where you can get a. Response from mortgage brokers as to how lenders might approach this.

jamesd

Endowment mortgages no longer exist for new loans. The current equivalent are interest only loans with a repayment strategy that may include things like repaying out of pension lump sums or ISA or other investments.

It's relatively hard to get interest only mortgages these days but an alternative is a repayment mortgage with term extending until close to state pension age. Or some lenders will lend into retirement as far as age 85 or even older. That sort of term would make it readily affordable for you in the short term.

An offset mortgage tends to be best for this because you can leave the money in the offset account until it's needed.

dunstonh

I am thinking that if I can take an endowment mortgage NOW while still employed and then just stash it away,I can use it from 53to 55 when my redundancy runs out then pay it off with my pension cash.

Endowments were last retailed in the mainstream in 2003. You havent been able to buy them since then (Std Life were the last to pull out).

bratley

Sorry - I did mean interest only not endowment. But will look at offset as well with long term but flexibility to pay off once I get lump sum.
Will also look at posting on alternative board as suggested.

This my first posting so sorry if not in right place!

Thank you