Advice please with interest only part of mortgage

Rainbowsky

Hi all, I would really appreciate it if those of you with your great knowledge could answer some questions for me. I apologise in advance if these are daft questions

My husband and I originally had an interest only mortgage (endowment) with the Halifax then remortgage some years ago with Natwest.

We now have two accounts on our mortgage:-
Account 1 = capital & interest
Account 2 = interest only

Both accounts run until 2023.

The endowment matures in 2018.

We are at the moment overpaying by a small amount each month on Account 1. We are allowed to overpay by 10 percent of the loan balance each year. (Although we are not overpaying anywhere near that much)

As far as we are aware the endowment is assigned to us (I intend to confirm this later this week).

Question 1 - When the endowment matures in 2018 and if it is indeed assigned to us, will we be allowed to pay off Account 2 at that time? (this will be more than 10 percent of the loan balance).

Question 2 - If the endowment is assigned to Natwest when will they pay the proceeds into Account 2, 2018 or 2023?

Question 3 - We are hoping the endowment amount will just about cover Account 2 but if there is a shortfall when would we be expected to find the extra money? When the mortgage ends in 2023 or before?

Question 4 - If we can pay account 2 off in 2018 how will that affect the monthly payments for the rest of the term of our mortgage?.


Lots of questions I know but if anyone can answer some or all I would really appreciate it.

Many thanks

Kate

Edi81

You need to give some numbers ie how much is outstanding in part 1 and part 2.

Rainbowsky

Thank you for replying to my post. I'm guessing you mean figures to answer question 4. I'm not looking for specific figures, I just meant will paying off Account 2 reduce my monthly payments or reduce the length of the overall loan or perhaps not change it all! Nevertheless the balance on the mortgage is approx. £59,000. £23000 of that balance is the interest only part. Hope that helps.