figures for paying off mortgage?

panny300

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i have £9200 left on my mortgage with no early payment penalties,and have a prudential endowment from a previous mortgage that started in about 1988 and finishes in april 2011.
the surrender value is 10,450,the monthly endowment is £22,my interest mortgage payments are £58 a month (isa endowment running alongside which i will carry on).
so over the 3.1/2 years left on the endowment i will pay £3360 mortgage and endowment payments,the forecast on the endowment is £12300 at 4%growth or £14400 at 8 %,it looks like i will be paying as much in as i would get back,or would there be any terminal bonuses as well on top?

A pamphlet with the surrender values mentions something about reattribution of the inherited estates of with profits sub fund? and that it may affect any payment if i cash in,anyone know anything about this.

so do i pay off mortgage?

panny300

thanks fc,i have just gone self employed.so money a bit tight at present,but it's not critical, but looking at the projections.the growth on the endowment would have to be about 6/7% over the 3.1/2 years left,to give me an extra 3.1/2 thousand.but i would be paying in (mortgage+endowment).3.1/2 thousand over that period,or have i got it wrong.
would i not be better paying off the mortgage and putting those payments into an isa or something.
the spanner in the works is this "reattribution of the inherited estates of with profits sub fund" i would miss out on any bonuses if i cash the endowment in,but i can't find any info on any progress that has been made.

IveSeenTheLight

I think you would be better to keep the endowment policy till it matures.
Also check out what you can overpay into your mortgage. You may be abloe to pay off a little quicker, save a little interest and have a nice boost in 3 1/2 years when the endowment matures.

On the other hand you would feel great having no mortgage and reduce your outgoings by your mortgage and endowment policies

P.S. Wish I only had 9200 to go.
I have over 200,000 to go but if things work out I could be clear in a years time.;)

panny300

200,000,thats a miillstone i would'nt like to have round my neck.

IveSeenTheLight

panny300 wrote: »

200,000,thats a miillstone i would'nt like to have round my neck.

Me neither so am hoping to get it cleared as soon as possible.
If things work out as hoped, it can be cleared in about a years time.
If it does, man what a party I will have for New Year 2008-2009