relinking endowment to mortgage

dunstonh

With virtually all endowments where switching funds is an option, switching wont cost you and the annual management charges are the same (some limit the number of switches you make per year). The better endowments may offer a fund range that is quite wide and includes external funds which may have a slightly higher annual management charge. However, these are uncommon and most only offer internal funds with identical charges.

Seamonsters

Hi could you give me an idea of how much an IFA might charge for this please?

Seamonsters

I've just realized that I could use my mortgage reserve facility instead of going down the interest only route:o. I suppose essentially it could work the same way but with more flexibility.

dunstonh

Probably wouldnt charge anything as its a simple job and they can assign the servicing rights to themselves and get paid the 12p a month or whatever the renewals are. Sometimes its just quicker and easier to do a transaction like this at no charge.

Seamonsters

Thanks Dunstonh
I've just found out that the mortgage reserve facility is at the SVR rate (7.89) and not 5.92 like the rest of the mortgage (it looked too good to be true).
Looks like an interest only further advance will be the best way to go after all.

Seamonsters

One more question.
Are you able to tell me how much better my endowment could be doing at the moment if I had changed things earlier ?
Sorry if I'm asking too much.

dunstonh

Are you able to tell me how much better my endowment could be doing at the moment if I had changed things earlier ?

Hindsight is a wonderful thing. A medium risk spread using internal funds would have seen you about 2% a year better off. Thats enough to have you on target and going to a surplus.