Can I use my endowment as part of a remortage

Annerich1

This is the situation,I have an endowment which is not attached to a mortgage , my current mortgage is a repayment and we need look for a better deal to lower monthly payments. Can I use the endowment ( I don't really want to cash in as has only two years left) to offset against new mortgage ? Ie we owe 72000 on current mortgage ( property worth 250000) and endowment should pay out at 40000 at lowest estimate, what I'd like to be able to do is use endowment to offset against new mortgage , ie only have to have repayment mortgage on the 30000 difference and endowment pays rest. Is this even possible or am I living in a dream world.

betmunch

Under the right circumstances you can have interest only on the portion of the mortgage covered by the endowment

Annerich1

Thanks, will talk to our mortgage company to see if they would consider this option.

betmunch

Annerich1 wrote: »

Thanks, will talk to our mortgage company to see if they would consider this option.

Many companies no longer offer any form of interest only so don't be discouraged if they say no

dimbo61

Has the endowment got a guarantee to pay X amount at the end of the term.
You might be better cashing in now and overpay rest of mortgage debt with monthly premium you were paying for the endowment.