Mortgage / Endowment Different finishing dates

Mark9562

Hi

I have an endowment mortgage that I took out in 1990 and I know that there will be a shortfall
I extended my mortgage a few years ago with an extra amount which has now been paid off as a repayment mortgage.
I am now left with an endowment policy that matures in June 2015 but my interest only mortgage is not due for payment until July 2017
My question is will the endowment be paid to me or the building society?
Ideally I think that it suits me to take the endowment and re-invest for the remaining period rather than pay it off early as there is a £6k shortfall, is this possible?

TrickyDicky101

Contac the endowment provider and ask if the policy is assigned to the lender (in which case will be paid to them)?

If you have moved lender over the years then it is unlikely the policy is assigned to the lender, but you won't know until you ask the insurer (who provides the endowment).

Unless you are on a stupidly low interest rate currently, I suspect your best course of action will be to pay the endowment maturity proceeds against the mortgage balance rather than reinvesting it elsewhere.

Thrugelmir

Mark9562 wrote: »

Ideally I think that it suits me to take the endowment and re-invest for the remaining period rather than pay it off early as there is a £6k shortfall, is this possible?

If you use it to reduce the mortgage. Then you'll save interest.

If you then continue to pay the same amount as you are. Plus the money you are currently paying for the premium on the endowment policy. You'll start to make inroads into the £6k shortfall.