Hi Group. I have a Nationwide 25 year endowment mortgage - £29,000 that has 4 years to run and there could be a shortfall on it, est. 2 to 6 thousand. I am not entitled to compensation. I am on tax credits and only allowed £300 in interest on savings before getting stopped a proportion of my tax credits. Therefore it's not worth my while having savings over a certain limit and after having a couple of small wins on a tv show I am at that limit. I can save a few hundred pounds a month if I am very careful towards my shortfall but there seems little point if the tax man then reclaims it. Next year I will not be entitled to tax credits and will, if possible, need to increase my hours to be able to survive at all
What I have been doing is for the last four months increasing the amount I pay to Nationwide to lower my final bill with them or as I may be struggling next year it could mean I can have a holiday from payments as I will be way in front. This way I won't have to delare savings to the tax man. I am starting to doubt the wisdom of my plan. Can anyone advise if there are any pitfalls or anything else that might be better? TIA