I am currently on a standard variable rate mortgage with N Rock with 50k outstanding balance. The mortgage is part capital/repayment and part interest only. The policy tied to the interest only part (28k S Life Homeplan) is expected to fall short of its required sum with the current anticipated retuns being 21k, 23k and 25k for low, medium and high performance. It currently has a value of 14.5k with 5.5 years still to run. Given that I will still have to contribute £4,750 to the policy until completion I was wondering whether I should take the surrender value now and pay it toward reducing my mortgage balance, to 35k. I am currently making overpayments to reduce the balance but would then be able to increase this to a monthly payment of £525. I know that I would be foregoing the life cover for 28K but feel I am covered in other ways for this. I'm keen to clear the balance asap and would appreciate any advice on the options open to me. Thanks.
The best advice I can give is that it is definately worth having a mortgage review so that all the facts and figures can be put down and options given to you. A further reason for this is that the Northern Rock Standard variable rate is one of the higher ones out there at 4.79% so there are better deals which could save you money aswell as ensuring the new mortgage meets your current needs. Email at
and i will be more than happy to carry out a free mortgage review and discuss any insurance matters if needed.
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