Clear Mortgage or leave endowment in situ

[ritch]

Looking for advice please.

I've got an endowment policy which has matured, its enough to just cover the remainder of the mortgage, which is due for repayment in 2021. Monthly Mortgage payments are are very low (less than £200).
My question is - is there any benefit to either
- continue with monthly mortgage payments until the end of term and then make final payment, leaving the endowment for a few months more to see if there is any increase in either value or bonus payments (and have the life cover provided)?
or
- take the endowment fund and pay off the mortgage?

thanks

[mike9009]

I will be in a similar position sometime soon, except my endowment will not cover the capital. I have been paying off some capital to compensate, but my mortgage term is another 10 years at 0.25% above BOE base rate. So interested in people's views.

In your position I would pay the mortgage off. Short term I think there is a lot of risk. Depends how long you are prepared to wait in case of a market drop.....

But it all depends on your appetite for risk.....

[Jambo85]

Ahh, to only have £2k left on the mortgage

[ritch]

Jambo85 said:

Ahh, to only have £2k left on the mortgage

I wish!!! Its a wee bit more than that, but thank goodness for under performing endowment policies......

[Jambo85]

ritch said:

I wish!!! Its a wee bit more than that, but thank goodness for under performing endowment policies......

Ahh your £200/month are interest only? Got you. I’m not a financial adviser if that needs to be stated

[ResQ1]

We were in exactly this situation 1 year ago, finding out from the annual endowment and mortgage statements that the endowment balance was just over enough to clear the mortgage.

I took us less than 5 minutes to decide to pay off the mortgage. One of the best decisions we've made, the feeling of handing over the payment cheque to the building society is just brilliant.

Given the current situation with COVID and Brexit, I'd say that paying off debt and owning your own home, free and clear, is a good decision.

[ritch]

thanks all for the advice. Mortgage is now cleared :-)