Remortgaging an endowment mortgage advice pls?

Binxy

First let me say I have got a guide on how to remortgage thanks to this site, so I am obviously scouring that. And will ring them as soon as it comes to 2 months before I can remortgage.

What I would very much like from you brilliant helpful peeps is:

- some idea (approximate in the extreme, I know) of what our monthly outgoing could, might, cross fingers possibly be
- advice on what to do with the ISA we currently pay into
- advice on the 30 grand loan and subsequent £5,000 cheque

The facts:

5 years ago we took out an endowment mortgage for app. £68,000

Shortly after we added a further £12,000 making it £80,000 (financial genius aren't I?)

Our current monthly payments are:
£400 to the mortgage
£123 to the ISA (currently expected to fulfill expectations if it stays a 7% blah blah)
£320 to the loan

Now, the £30,000 loan secured to the house I would very much like to incorporate into the mortgage, however........... in 3 years time we are due to recieve £5,000 as a refund of our insurance payments IF we keep the loan. So that five grand factors in a wee bit (even though instinct tells me in the long run we're better amalgamating the loan, my head also fancies the idea of a £5,000 cheque :rolleyes: )

Now, I know advice usually says leave the ISA as cashing it in so early is next to pointless, BUT I badly DO NOT want to keep paying that £123 each month, and really want a "proper" repayment mortgage now. Could we incoporate the ISA into the mortgage thereby knocking a bit off what we owe?

Can anyone help please?

payless

First thoughts are if you have already decided on the broker you are going to use, - have you asked them these questions yet?

Monthly payments will depend on-

-Rate ( effected by product terms such as fixed/ variable, and you meeting lender criteria on income, LTV and history - remember adding a loan might put you in a higher rate for higher LTV)

- Term remortgage taken over

- Interest Only or repayment ( or split)


Loan
Get redemption figure ( including any rebate on insurances) and compare this will the difference it might make on your mtg ( taking into account any differences in terms) - A good broker will assist with this calculation

I often find that the rates on secured loans are much higher than the rates on mortgages, but most come with redemption fees ( or if front loaded- small rebates on interest for repaying early), and often if upfront loaded with insurance its like rock and hard place , whether to payup now, or continue paying over the odds for some years

Insurance rebate
This will likely have certain terms and conditions, so you would need to be sure you have meet them to date, and can meet future requirements
( check out for ...post form back , in a orange enevelope , on a wet wednesday , in a yellow postbox sort of thing)
PLUS are you sure the firm that is providing the refund ( unlikely the actual loan or insurance company themselves) will be in a position to make the refund.

ISA - is it a normal equity Isa or one packaged like an endowment?
( although I am restricted in what I say in these matters anyway)

Hope this at least gives you a few things to consider

Binxy

Thank you - all more things to consider.

Re. the "post form back , in a orange enevelope , on a wet wednesday , in a yellow postbox sort of thing" ( :rotfl: ) I know exactly what you mean! The chances of actually receiving it, I feel, are minimal.

That's a good point about terms etc, our mortgage is due to finish in 20 years and that's also a dealbreaker for me - I can't face adding another 5 years on now.

As for what type of ISA it is, I am deeply ashamed to say I have no idea as hubby sorted it out (how very unmodern of me as a young woman!) But if I can find out from him I will post it later.

Again - thank you for taking the time to reply