Hi
Hoping someone can offer me some advice please.
I am in the fortunate position whereby next May 2014 I will be given £35k.
My mortgage is made up of £35.900 repayment and £40K endowment/interest only. The endowment ends in 9 yrs and is set to pay off the £40k. I have no issues with the repayment part of the mortgage, and am looking to overpay over the year.
My main question is - when i get the £35k, would you recommend paying off the endowment/interest only loan, or the repayment?
I have had conflicting advice = pay off the endowment then it's a savings plan, and i can then overpay the repayment and be free of it within a few years; against paying the repayment, the endowment is on track, and then i have money to save/do up the house with/pay against the endowment if i want to..
If my priority is to be mortgage free, which would be the better move?
Thanks!
Hoping someone can offer me some advice please.
I am in the fortunate position whereby next May 2014 I will be given £35k.
My mortgage is made up of £35.900 repayment and £40K endowment/interest only. The endowment ends in 9 yrs and is set to pay off the £40k. I have no issues with the repayment part of the mortgage, and am looking to overpay over the year.
My main question is - when i get the £35k, would you recommend paying off the endowment/interest only loan, or the repayment?
I have had conflicting advice = pay off the endowment then it's a savings plan, and i can then overpay the repayment and be free of it within a few years; against paying the repayment, the endowment is on track, and then i have money to save/do up the house with/pay against the endowment if i want to..
If my priority is to be mortgage free, which would be the better move?
Thanks!