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Best way to save for mortgage shortfall

Keeker_2
Keeker_2 Posts: 1 Newbie
in Mortgages & endowments
Hi all,

I have unsuccessfully tried to get compensation for my endowment mortgage mis-selling, so I am facing a £25,000 shortfall in 10 years time. My question is, what is the best way to save for this? Is it just a case of putting aside a not insubstantial £208 per month?

Any advice welcome.

Thanks.
K.

Comments

  • dunstonh
    dunstonh Posts: 121,277 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    so I am facing a £25,000 shortfall in 10 years time.

    Endowment shortfalls started being reported over 10 years ago. Why have you left it so long?

    Is the £25k shortfall projection realistic or over/under stating the likely outcome?
    My question is, what is the best way to save for this?

    convert £25,000 of the mortgage to repayment basis. Or overpay an amount each month to equate to that.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Switch to a repayment mortgage over 10 years and it'll cost less than £208 extra per month.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Start overpaying the mortgage now before interest rates start to rise.
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