Endowment Re-Mortgages
There are a great many people with endowment based interest-only mortgages who may be worried that their investment will be insufficient to pay off the outstanding loan that it was intended for. There is no need to panic though as there are a number of options available open to them.
What to do with the policy itself however may be the least of the concerns as the priority is more likely to be to ensure that arrangements are made to cover the mortgage. Although 'interest-only' used to be by far the most popular method of mortgage repayment, today however, repayment mortgages are beginning to outnumber them due to poor returns experienced by investment holders. And it may be very straightforward to switch the mortgage from an interest-only to a repayment or even part-repayment basis and actually save money at the same time by getting a better deal.
| It makes sense to review mortgage arrangements regularly anyway as there are some very competitive deals available at the moment. Switching to another type of mortgage or to another lender altogether may involve upfront arrangement fees and it is also a good idea to look at whether early exit penalties are imposed on the existing mortgage. However, even taking these expenses into account, there could still be money to be saved while resolving the endowment problem at the same time. Eight out of ten people in the UK today are probably paying more than they need to for their mortgage so being forced to rethink mortgage repayments could in fact be an excellent opportunity. |
If you are thinking about trading in or surrendering your endowments, please click on our Mortgage Enquiry Form below and we will arrange for one of our experts to contact you. It is obviously important that the alternative arrangements are made to ensure that the mortgage liability is covered and our independent advisers will also be able to help with this. Alternatively, you can call us on 0845 108 0505.
