last year of mortgage no deals available?

The_bear_4

We are coming up to the last year of our mortgage in June and Abbey have told us they will not offer us a deal because of that and our rate will go up to 7.4%. We have around 23,000 left to pay (endowment).
1) Does anyone know if anyone would give a better rate than this
2) Is it worth moving building societies at this late stage, will it affect how much we owe?
3) We have about 4,000 in an ISA. Is it better to use this to pay some money off the mortgage?
Any advice would be appreciated as we dont have a clue about financial stuff!

Tiddler_2

Obviously there are better rates out there, but very few will want to take on a mortgage with 1 year to go.

If it is all due to be paid off from the endowment policy, then you could look to initially take the mortgage out on a 5 year term, and then still pay it off next year when the policies mature.

That brings it own problems in that you then have to find a deal with no penalties, and the product fees charged on the deals would probably mean you would not save the cost of the fee in 12 months. Bearing in mind if you got a 1% lower rate you would only save £230 over the year, but the cost of a penalty free deal, with free legals and free valuation would probably be around £500.

In my opinion not worth bothering

EdInvestor

Why not consider surrendering the endowment, paying off a big chunk of the loan and then using the endowment premium plus the existing mortgae payment to pay off the rest of it?

Post some info to make sure you wouldn't lose out by doing that

Provider
Guaranteed sum assured
Declared bonuses
Surrender Value
Monthly premium
Maturity date
Maturity forecasts