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Invest or pay off mortgage ?

I have an endowment which is due to mature in June. It was taken out with my original mortgage some 25 years ago, but my mortgage still has 10 year to run as I have borrowed over the years. Do i have to pay this off my mortgage now or would I be able to invest it for the remaining mortgage term as I have a shortfall on another endowment which is still in force.
Any advice would be appreciated.

Comments

  • dunstonh
    dunstonh Posts: 120,376 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If the endowment is not assigned to the lender then you get the cheque and you can do what you like with it. If an assignment does exist you could get it removed as most lenders do not insist on assignment nowadays. Indeed, most wouldnt be able to tell you if they have assignment or not.
    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.
  • Do you think,financially, it would be better investing the endowment for 10 year or paying it off the mortgage.
  • dunstonh
    dunstonh Posts: 120,376 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Its a matter of opinion and risk profile. I choose to invest rather than clear my mortgage but I accept the risks of investment. There is no right or wrong here.

    Using up the ISA allowance can be common sense with the investments as they are a use it or lose it allowance and the long term benefit can outweigh clearing the mortgage.
    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.
  • TBeckett100
    TBeckett100 Posts: 4,732 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Cashback Cashier
    question is, when will you get another lump sum in your life as a safety net apart from natures way of repaying the mortgage - inheritance.
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