What do I do now!!

LRUK

What do I do for the best.
For the last ten years I have been saving like mad doing without things I wanted to save up to pay of the mortgage I have now completed this task and have 35000 enough to clear the mortgage, BUT is this what I should do.
I have no loans or credit cards ( can't get a credit card as I have never had one or a loan I'm 32)
What is the best thing to do.
I have been told "pub talk " that its best not to pay all of it off. Why I'm not sure.
To keep a thousand in. so they hold the deeds.
Its even been sugested that I would be better off investing the money.
The problem is I don't want people I know to know that I am in this position so it is all said in passing.
Help as my dream is turning in to a nightmare..
( I have considered buying other propertys , but don't know if I want to take the risk)

Pheno

What rate is your mortgage? About 6%? If so, then only invest the money if you're pretty sure you can get more than 6% return on your investment *after tax*. This is pretty unlikely with conventional investments at the moment.

Not sure about the "keep a couple of thousand" argument - never heard that before.

Xbigman

Unless you have a very cheap deal on mortgage interest then pay off your mortgage. The argument about keeping mortgages going so the deeds are stored / credit line is open is rubbish, you are paying interest for nothing. Get the deeds back and buy a fire proof moneybox to keep them and other valuables in. Save all that interest you are paying and start an on-line savings account and put half your spare income in there every month. Spend the other half and enjoy life.

Who ever you bank with will give you a credit card if you are employed and your bank account has been run sensibly.
Regards



X

nationwide_3

I bought a endowment policy in 1982 and have now been told the surrender value is 23,768.00 and the forecast for 2007 is 28,300.00 4%, 29,200.00 6%, 30,900.00 8%, I was told by the salesman that it would pay out a final terminal bonus, can someone please advise me.

mountainofdebt

Can I must admit I agree that it makes little sense to have savings if the interest rate on the savings is lower than your mortgage interest rate.

You may get charged for finishing your mortgage early but I think many institutions only ask you keep the account open with a nominal amount of a couple of pounds.

However given that you have a wide range of options open to you, I seriously would recommend that you take free independant financial advice.

Pat yourself on the back .....you certainly deserve it!

dunstonh

nationwide wrote:

I bought a endowment policy in 1982 and have now been told the surrender value is 23,768.00 and the forecast for 2007 is 28,300.00 4%, 29,200.00 6%, 30,900.00 8%, I was told by the salesman that it would pay out a final terminal bonus, can someone please advise me.

Probably best to start your own thread, rather than hijack this one. Otherwise it gets messy. However, quick note is that most projections do not include any accrued final bonus and a 1982 policy would still get LAPR (tax relief at generally half the basic rate). Depending on the company, there may be a final bonus still to add on or there may not be.

LRUK

mountainofdebt wrote:

Can I must admit I agree that it makes little sense to have savings if the interest rate on the savings is lower than your mortgage interest rate.

You may get charged for finishing your mortgage early but I think many institutions only ask you keep the account open with a nominal amount of a couple of pounds.

However given that you have a wide range of options open to you, I seriously would recommend that you take free independant financial advice.

What sort of options are avalible??

mountainofdebt

Well you could pay off your mortgage, you could pay half your mortgage off and save the rest or you could save it all. If you decide to save it what sort of investment vehicle do you use? An answer to one question may lead to another question!

What I mean to say is that its obviously difficult to decide what is the best, especially as you don't want to let on that you are in this situation to friends and family (which I can understand).

That's why I think speaking to a recommended financial adviser would be the best solution...after all you are not committing yourself to anything by going to see one.

margaretclare

Who has the deeds is now irrelevant - all this detail is no longer held on paper but held electronically by the Land Registry.

When we changed our deeds 2 years ago (equity release mortgage + putting my husband in as joint owner with myself) we were told by our conveyancer that we could have the old deeds if we liked, otherwise they were going to send them to the County Record Office as being of only historical interest. We have them now - fascinating historical documents showing the change and development in this area over the last century, but not of any other significance.

Amazing the amount of misinformation you hear in 'pub talk'!

Aunty Margaret

lipidicman

margaretclare wrote:

Who has the deeds is now irrelevant - all this detail is no longer held on paper but held electronically by the Land Registry.

Well this is not strictly true. The Building Societies dont need to keep your deeds anymore (as they have electronic info) BUT YOU NEED them, and now you will have to pay to store them if your building society decides it wont. You will need them if you come to sell and they must be kept securely.

There was a piece on moneybox about it. Some building societies will be releasing the deeds to customers. Ours arent at the moment and we have left £30 on the mortgage to make them keep them (not thousands as the OP suggested, with £30 the interest is cheaper than storage fees)

vale_2

nationwide
the surrender value you have been quoted will not contain a terminal bonus as life companies don't pay an end/terminal bonus on early surrender! Hope this helps.