what happens at the the end of the endowment term?

[Martin]

we've only been in our repayment mortgage for 6 years; which means our capital sum (of £100k) has only gone down a few grand, such is the nature of repayments- mostly interest at the start and mostly capital towards the end. And we've only been paying off £43 of the shortfall a month, so that doesn't leave a lot to pay off anything with.

I'm not sweating it all the time the residual interest is at such a low rate (even it it goes up to 4%)

thanks for the info about overpayments on I/O loans; bit late now though  

[Mrs Pingu]

Well at least you know now that if you have to take out another, higher interest mortgage, to cover the i/o shortfall, that you'd be better to stop overpaying £43 a month into the current one and put that £43 into the one subject to the higher interest rate.

[mr magnolia]

Now its my turn:
Aviva need me to prove who I am (didn't worry them while they were taking, rather than giving...) And then they will pay me £18k.
I've paid £10k in over the 25 yr life of my low start endowment.
Can't decide if its good or bad. It just is, I guess.
It's 5k below target. Houses used to be cheaper, eh?

[rogerzilla]

the overpayment is designed to pay off the shortfall over the remaining term (19 years), I doubt they will let us take the normal payments we have made from the regular repayment mortgage;

hopefully we will devise a shorter term means of paying off the shortfall (involving sawnies or maybe prostitution) before too long

You can just change the interest-only portion to repayment as well.

[Canardly]

My endowments are going to undershoot by miles luckily mortgage is paid for.

[rogerzilla]

I sold mine in 2000 - one of the best financial decisions I ever made.