Pay money off mortgage?

[Lagoonablue]

We moved last year and trebled our mortgage. It is affordable but we are on a tight budget. I have 2 old endowment policies due to pay out in 2015 of about 23 grand in total. My initial,thought is to pay this into our mortgage but after a rough calculation it will only make about £100 difference to our monthly payment.

Is it worth doing this? Or should I invest the money elsewhere? Or use to pay for the new kitchen I will need and perhaps help with buying a new car?

Any ideas. I am rubbish at money matters.

100 a month a better return than any isa s etc. also when interest rates rise it could make a more significant difference.

Can you pay this off the mortgage without penalty? Youight need to think instead about making overpayments each month instead to avoid a penalty charge.

Otherwise, have you got a rainy day fund? We don't and I would be so much happier if we did - even if it was earning 0.05% somewhere

Thanks. I never thought of the return thing. Also penalty on mortgage. Am going to have to investigate all of this or blow it on a holiday! No, need to be sensible.

I would pay off some of the mortgage as long as no penalties are incurred. £100 a month is £1200 a year and you will owe less.

Hi,

We are in the same position almost. We have 8 years left on ours with a balance of £63,000. Our 25 endowment matures in March 17 and is expected to be around £35-£40K at worst. I have been overpaying the mortgage for a while hoping that the mortgage balance and endowment pay out match each other (paying £800 a month at the mo). Not sure it will but we will probably still pay it off the mortgage and pay off a lot quicker.
I hope to have it paid within 4-5 years!
Try asking on Moneysavingexpert forums as there people on there with great advice!

Don't blow it on a holiday. If things are tight for you now then things will be tighter once interest rates rise (they will). You are better paying it off the mortgage. Check no penalty though. Is it an offset mortgage?

I second what Supermum says. If you're on a tight budget, then interest rate rises will be an issue with what sounds like quite a large mortgage. Find out what the maximum amount is that you can overpay (usually 10% per year for a fixed rate, but check your deal), and pay as much off as you can. If your monthly payment then goes down by £100, I'd recommend using that as an overpayment too. Just get yourself in the best position you can now while rates are still low.

yes similar for us supermum, ours finishes in 2 years', with 2 endowments plus overpaying every month and hope the same.

Alemci, I can't wait to be mortgage free!

Thanks for all the advice. Not an offset mortgage. Still have 18 years on current mortgage but is fixed rate until 2019. Endowments predate current mortgage and have just kept them on. Will be nice to get a lump sum and the. Decide what to do. Won't blow it as if reducing mortgage makes a difference then will be worth it as things are tight.

As one of those who once paid 12% mortgage interest plus repayments (yes it was that bad)...,. get it paid off now when interest rates are at record lows. It can only get much much worse. 6 - 8% rates are not unlikely and compound that over a few years and there is little you can do for your finances than repay debt (repay any credit card debt though first and over draft). You probably are allowed to pay about 10% of the mortgaeg off a year without penalty but check the terms.

nor can I super