In Oct 2013 our £55k endowmnent matures. A number of years ago we had warnings that it was not going to pay out so converted £25k of the original £55k. So effectively we owe £30k.
Friends Provident have stated it is likely to pay out £42k come Oct. Our mortage with Santander has just been fixed at 2.99% 5 year fix and they have verbally told me that I can pay ALL of the endowment regardless of value of it WITHOUT penalty (we have a overpay element of 10% of our mortgage per year which is currently £220k.).
We will probably want to do pay off as much as we can but do not want to be penalised for paying off more than 10%. If what Santander is saying is true will the endowment element NOT be counted at all as an overpayment. Once we pay it off we would like to keep our mortgage payments as they are.
Sorry - its a little complex!
Friends Provident have stated it is likely to pay out £42k come Oct. Our mortage with Santander has just been fixed at 2.99% 5 year fix and they have verbally told me that I can pay ALL of the endowment regardless of value of it WITHOUT penalty (we have a overpay element of 10% of our mortgage per year which is currently £220k.).
We will probably want to do pay off as much as we can but do not want to be penalised for paying off more than 10%. If what Santander is saying is true will the endowment element NOT be counted at all as an overpayment. Once we pay it off we would like to keep our mortgage payments as they are.
Sorry - its a little complex!