last mortgage payment due dec 2008- how...

hostertlady

...... i am on a mission at the moment to bang as much as possible off my mortgage but i have a couple of questions that i am not sure about.

my mortgage payments are £xxxx X 9 months = £xxx

repayment loan that we used for home improvements £xxx X 9 months=£xxx
( so part endownment and part repayment)

total=xxxx.xx in total, i have money that i could use to pay them both off now so should I???(

then do i cancel all my direct debits??

or do i keep nominal amount till the end???

i have no idea.. what does everyone else do??

Desperate_Housewife_2-2

hi hostertlady, I'm not quite sure what you mean, will the endowment lump sum pay off the mortgage? What kind of mortgage do you have? Will it allow overpayments? Please post a bit more info and I'll try to help

hostertlady

]]]hi hostertlady, I'm not quite sure what you mean, will the endowment lump sum pay off the mortgage? What kind of mortgage do you have? Will it allow overpayments? Please post a bit more info and I'll try to help]]]

the endownment is a separate issue and when i have paid off what i owe on my mortgage and other one ( home improvement loan)
the endownment cash will be all mine:beer:

yes it does allow overpayments and i have been overpaying each month and now and again i have banged off a lump sum..

Desperate_Housewife_2-2

still not quite sure what your question is. Would it help you if you asked for the value of your endowment and also get a surrender value for it? Are you covered for life cover when your endowment policy ends? Do you need life cover (ie any dependants?)

bryanb

Do you really mean your house will be completely paid for in December?

hostertlady

bryanb wrote: »

Do you really mean your house will be completely paid for in December?

yes house will be completely paid off in december,,

my question is: my total balance ( mortgage balance and home improvement loan balance) is a four figure sum and i have enough to pay it off all in one go this month so should I?? so the balance then would be i owe zero. or should i leave some money left to pay until when it actually finishes in december.. say maybe £100 or something??

hostertlady

QUOTE:Are you covered for life cover when your endowment policy ends? Do you need life cover (ie any dependants?)

crumbs i never thought about that!!

Desperate_Housewife_2-2

I suppose a lot depends on your personal circumstances. If you need some ready cash then it would be a good idea to keep hold of it bearing in mind it will most likely be very difficult to borrow money in the near future due to the credit crunch.

You could estimate how much you would save by paying it off against what you would earn in a cash isa.

I'm sorry I haven't got any more answers, maybe someone will come along in a bit to suggest other alternatives.

Trying_to_be_good

Desperate Housewife makes good points
* ensure you have life cover for any dependents (but this would continue if you carry on paying your endowment even if the mortgage is paid off)
* ensure you have emergency savings son don't wipe them all out paying off the mortgage (my boiler had to be replaced in December - glad I had access to my savings)
* is the endowment assigned to the mortgage company? If so, you'll need something from the mortgage company to break that link.
* is there an ERC for totally paying off the mortgage early?
* is there a deeds release fee/mortgage exit fee? You'll need to budget for this
* don't worry about deeds - they're now stored electronically, so you don't need to look after the pieces of paper in a safety deposit box
* do you plan to save the money you would have been paying in monthly repayments? Make sure it's high interest savings, fill your ISA first. If you don't have an ISA for 06/07 there's still time to put £3,000 in and get tax free interest.

Can't think of anything else just now!

bryanb

[quote=Trying to be good;If you don't have an ISA for 06/07 there's still time to put £3,000 in and get tax free interest.

You do mean 07/08? If not I've been losing out.

thriftmonster

Also if your buildings insurance is linked to your mortgage, when you pay off the mortgage fully, your insurance will stop. You either need to have other insurance in place or leave £1 in the account to keep the insurance running.