Re-mortgage and covert to a Capital Repayment Mortgage

This option will guarantee that the mortgage is paid off at the end of the term assuming payments are kept up to date. The exercise must consider the new costs involved versus other options. For example:

Mr Jones may wish to surrender or sell his endowment policy and reduce the mortgage liability. If we assume that the endowment can create a lump sum now of £14,000, Mr Jones would have to re-mortgage for £70,000 less £14,000 or £56,000.

For example only, (assuming an interest rate of 5%) the new repayment mortgage would cost £440 per month approximately. Replacement life cover (as the endowment no longer exists) may cost approximately £20 per month (subject to state of health, age etc).

This means that the new capital repayment mortgage would cost:

New Mortgage £56,000 over 15 years: £440

Life Cover over 15 years: £20

Total: £460 per month

Therefore for an extra £30 per month, Mr Jones can be certain his mortgage will be paid off.

The mortgage costs are illustrative only and do not take account of changes in interest rates or fixed/discounted periods etc. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Quotations available on request.

Can your endowment policy be sold ?

Although you should consider this carefully, as you may not get back as much as you have paid in, it is simple to check if anyone will buy the policy for higher than the surrender value.

Click here to complete an enquiry form and we will contact you ASAP. Once we have all the information we require, it will then take us approximately 3 working days to obtain a decision. Although we do not charge a fee for the initial investigation, commission may be payable if you proceed with a sale (this commission will disclosed to you before any transaction takes place).