Mr & Mrs Murray planned to use an endowment policy to repay the interest only balance of £120,000 when their mortgage term ends in 4 years.
Their latest endowment statement showed their policy was only projected to be worth £85,000 at maturity, meaning they wouldn’t have enough to repay the full balance.
Mrs Murray called us to understand their options for repaying the difference of £35,000.
After discussing their monthly income and expenses, we agreed they could afford to switch all, or some, of their mortgage to repayment.
Mr & Mrs Murray decided to use their endowment policy to repay £85,000 of the interest only balance and we agreed to switch the remaining £35,000 to repayment over 4 years. This meant they could repay all their mortgage when they originally planned to.