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No such thing as a stupid question, but...
NotNedFlanders
Posts: 1 Newbie
I 've only discovered this site today and already spent far far too long browsing, but I would like to ask a question which might have already been covered, so please be patient.
I have 4 mortgage accounts totalling ~230k, one of which is a 63k interest only account backed by a Standard Life endowment (with about 6 years left to run, costing about £146pm), SL have informed me that it is unlikely to pay off the 63k and the best I could hope for would be about 49-50k, here comes the silly bit... as the endowment is a savings account of sorts and therefore has a market value right now, would it be possible to use that as an offset against the mortgage and continue to pay the regular mortgage amounts plus the £146pm to reduce it even further, it seems annoying that I have this endowment/account which I can't use to my advantage ? I wouldn't even mind if I have to switch to an SL offset mortgage.
I have 4 mortgage accounts totalling ~230k, one of which is a 63k interest only account backed by a Standard Life endowment (with about 6 years left to run, costing about £146pm), SL have informed me that it is unlikely to pay off the 63k and the best I could hope for would be about 49-50k, here comes the silly bit... as the endowment is a savings account of sorts and therefore has a market value right now, would it be possible to use that as an offset against the mortgage and continue to pay the regular mortgage amounts plus the £146pm to reduce it even further, it seems annoying that I have this endowment/account which I can't use to my advantage ? I wouldn't even mind if I have to switch to an SL offset mortgage.
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Comments
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Standard Life projections do not include any terminal bonus that may accrued behind the scenes. If it was a 25 year endowment, with 6 years to go, chances are that you have some terminal bonus. You just are not aware of it.
You cannot use the endowment as an offset as it is a life assurance product and offset mortgages dont work in conjunction with them. You can pay extra into your mortgage though (subject to the T&C of your mortgage allowing it).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You probably know this, but if you have a with profits endowment with Standard Life you should know that you are on course for a windfall which should help a bit towards that shortfall
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