Endowment Mortgage - 2 Years Left...............

tracypee

Hi,

I have an endowment mortgage that is due to finish in December 2024.

The early years were thick with shortfall warnings, but the last 10 years it has been projected to have a surplus, at worst even if the growth goes into a minus it will only be a few £k surplus but goes up to approx £20k if it grows at 2%.  I am wondering if the recent financial issues that have been affecting lots of countries will have a negative impact on my forecast.  I don't really understand how the markets might impact it and I am not due a statement until December, am just a wee bit worried about it.

CustardApple

I was able to switch from endowment to repayment, but unlike you I had a number of years before completion.

Not sure how this will work with only having 2 years to go.

I kept my endowment going and received quite a large amount.  If I had not switched I would have had to find over £13,000

dimbo61

So overpay the mortgage each month for the next 2 years.
Know idea what your mortgage rate is but hopefully this is your only debt ?
With overpayments and the endowment payout you might be Mortgage Free in 2 years 

tracypee

Hello,

That's not possible, I'm on a fixed rate until it finished.  I will be able to pay it if there's a shortfall but I don't want to wipe out my savings, I wasn't banking on it.  I was going to use it to add an extension but now I will have to sit on it just in case.  I just wondered if anyone knew if current financial climate might impact the forecast.

400ixl

No way to tell at the moment, the year on year bonuses are locked in and with it being on track that is good. The final bonus which is a decent chunk is dependent on more recent performance. They do have mechanisms for balancing out the peaks and troughs though, so its hard to tell from my knowledge (ours paid out a few years ago so not monitored what was happening for a while).