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Remortgage from an interest only to repayment and what to do with the old endowment?

by sparklewoman 14 February 2010 |

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I have a mortgage with BoS, current rate 4.840% and outstanding balance of 104,000 and am into the 13th year of a 25 year arrangement. I know I need to switch to a repayment plan asap - any advice? Also, the mortgage endowment is with Legal & General (and is woefully underachieving) - should I keep this going as a longterm savings plan when I switch? What's the alternative? I am 50 this year and expect to work til 68 (at least!)

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Swarbs posted
Do you know roughly how much the property is valued? I.e. how much equity do you have? You could ask your existing bank to switch your mortgage to a repayment mortgage, but it might be better to remortgage to a lower rate if you have the equity.
Re: the endowment - how much are you paying into it, what is it invested in, and what are the charges etc. Also, you should take professional advice as to whether the endowment has been missold if it is unlikely to cover the amount of the mortgage.
Posted on 14 February 2010 | Love 2 loves Report
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manzanilla posted
If the endowment is 'woefully underachieving' then you would do better to cash it in and pay as much as possible off the mortgage.
(The only real exception to this is if you now have a health problem which would make it hard to get life assurance, so keeping the endowmwnt going would be useful for that.)
manzanilla
Posted on 14 February 2010 | Love 2 loves Report

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