Early part repayment of mortgage

Hi I have a an interest only mortgage of 46,000 and am paying 220.29 per month interest and 115 in 4 endowments. The endowments start paying off the mortgage in about 7 years when my partner reaches 65 years old. We were going to remortgage but my partner was made redundant 3 years ago and now has a low paid job and our income is below what is required to pay a mortgage and yet we managed for 3 years on my wages. According to all the endowment forecasts we will be between 3000 and 10000 short when the endowments mature but we are saving 100 a month in an ISA which we could use to pay the mortgage if necessary. It was for our retirement.

Would it be better to still save 50 a month in the ISA and pay an extra 50 a month into the mortgage or continue with the 100 a month. There would be no penalty for paying this 50 a month into the mortgage account (we found this out accidentally when my partner went to college and was given a hardship payout direct to the mortgage account).

The mortgage is with the Halifax and is a tracker mortgage 1.2% above base rate. Also would there be any advantage to paying in an occasional lump sum to reduce the amount. The payments from the college have already reduced the mortgage by 750.

Thanks for any advice Tricia

The ISA route may end up by being the best if stockmarkets perform reasonably well. However, it's also the riskiest option, because they may not. If you paid 50 or even the whole 100 into the mortgage you'd be guaranteed to repay it (or part of it!). If your partner's 58 now may not be the best time in life to take many risks.

Basically, the thinking behind your situation is, if I borrow money at (currently) 5.95% will I make more on the stockmarket than the cost of borrowing the money. If you think you can then keep the ISA going. If you're not sure and don't want to risk it, then don't and put the money directly into the mortgage.

Every bit you paid in via lump sums would help to pay it off.

Rob Graham