Endowment Matured - What to do?

waterbirthuser

Hi guys,
I am looking for advice from everyone.
I have a Endowment mature (£37,000), and have a mortgage (£96,000). I am looking at the following options:
1. Pay off against mortgage
2. Pay additional monthly payments (approx. £250), allowing me to keep monies for emergencies.
I have 14 years left on the mortgage and have additional monies (approx. £17,000)
Does anyone have any advice and can anyone suggest where, if I take option 2 I can store my monies and get the best returns?
Thanks

puk999

Where's the 17k?

Current accounts are paying good rates of interest at the moment. TSB Classic Plus, FlexDirect from Nationwide, Santander. There's quite a lot of info about these in this forum and the The Budgeting & Bank Accounts Board. You could consider a S&S ISA if you wanted to invest for the longer term.

Compare the interest rate on the mortgage with the net interest from the current accounts. If you're on a high rate mortgage and cannot change it then money towards that might make sense.

kidmugsy

You could consider remortgaging and using some of your money to give you a lower LTV, if you happen to be in the LTV range where that would matter. That way you'd hope to get a lower interest rate on your mortgage.

Or, simply overpaying your mortgage might be particularly attractive if it is the sort of "flexible" mortgage where you can borrow back overpayments if you need to.