Mortagage &endowment advice

[piggynose]

When the mortgage is fully paid up, should the endowment pay out the money i borrowed for the mortgage, more or less?
The mortagage is due to finish next year.

[bednobs]

it depends entirely on how the endowment is performing. in an ideal world, it would cover the mortgage and give you more, however, if it s not going to cover the mortgage i would have expected your provider to have let you know

[ladybirder]

You should have been receiving regular updates from your endowment provider to tell you how your policy is performing. If you haven't then you need to phone them and ask.

[Postdog]

Even with the best policy going when you took them out, unless you've made provisions, it is unlikely to cover it. I was looking at a shortfall of between 6 and 10 thousand pounds, and that was with making other arrangements.

You need to check with your lender what options are there IF the funds come up short.

[factor-fiction]

You should be checking at least once every two years (I get my statements annually- I think you probably should too) as you may be in for a nasty stock, as share prices are much lower no than around 8 years ago.

I have two 30 year policies due to mature- the one taken out in the early 80s is stiill on track to comfortably exceed the amount to be repaid, but the other, taken out in 1988 is going to fall well short. Overall the amount I get back will be around £15000 less than the original loan amount.

In preparation for this I've been overpaying my mortgage every year now for several years.
You need to chase up the statements quickly!

[Kathyan]

My husband took out an endowment policy in 1991. We bought our house in 2000 and since then the amount we look likely to receive has gone down. We have changed to a repayment mortgage and will pay off whatever we get from the policy when it matures in 2015. The policy will only pay out when it has matured.

[piggynose]

i do check my statements regularly. incidentally, it was a small mortgage, therefore small endowment. the last statement didnt give me cause for alarm, nor have the other statements.
will get in touch with legal&general though.