Paying off mortgage (endowment)

dgethin

We have got an endowment mortgage which is due to mature in 2012. The sum covers the whole of the mortgage with a bit to spare. However, I am retiring in October this year and was thinking of paying my mortgage off. If I did, would the endowment still mature in 2012 as originally planned or would it mature as soon as I paid the mortgage off?

Rawhide_2

As you have put all the hard work into paying the endowment up until now, you keep making the monthly payments until 2012 until the product matures, whence it pays out.

Then you have a nice lump sum to play with if you have already paid your mortgage off, and save 5 years of interest on the mortgage:money:

EdInvestor

dgethin wrote: »

We have got an endowment mortgage which is due to mature in 2012. The sum covers the whole of the mortgage with a bit to spare.

Do you mean the surrender value of the endowment at the moment covers the mortgage, with a bit over? Or the projected value at maturity covers it?

However, I am retiring in October this year and was thinking of paying my mortgage off.

Sounds sensible

If I did, would the endowment still mature in 2012 as originally planned or would it mature as soon as I paid the mortgage off?

It would continue on its own merry way if you paid off the mortgage as the two are not connected (and never have been, in fact).

The underlying point is whether or not it's worth using your cash to pay off the mortgage, keeping the endowment as an investment , or better to cash it in now (or sell it) and use that money to pay off the mortgage, investing/saving your spare cash elsewhere.

Post some info about it so we can see:

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly payment
Maturity date
Maturity forecasts
Interest rate payable on mortgage