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  • FIRST POST
    oops a daisy
    should I sell my endowment ?
    • #1
    • 22nd Jun 07, 10:54 PM
    should I sell my endowment ? 22nd Jun 07 at 10:54 PM
    I know this gets asked a lot on here but I would really like somebody with a bit more knowledge on the subject to look at my figures for me please. My endowment details are as follows
    start date 29.08.91 maturity date 29.08.16 so has 9 years to go
    basic sum assured 17193.00 attaching bonuses 7292.00
    monthly premiums 73.74
    The surrender value offered from L & G is 19248.70
    highest offer from APMM is 20698.00
    My mortgage details are as follows
    Interest only balance owing 33765.00 ( original mortgage was for 55k but have made unrestricted overpayments due to redundancy payout, savings, small inheritence and monthly overpayments of what ever I can make )
    Mortgage taken out on a tracker at a small % above BOE rate in October of last year fixed for 5 years current rate 5.84%.
    OK so my thinking is that if I surrender my endowment I will be 'saving' the monthly premiums of 73.74 per month and 'saving' interest payments on 20698 ( approx 100 per month ) so total 'saving' would be 174 per month approx. I would be left with a mortgage balance of 13067 which ideally I would like to pay off before the 5 year fixed rate ends.
    Basically I would like to know if the offer that has been made by the APMM member is a fair offer - seems good to me but I have no experience in these matters. I think I would be better off doing the above as having a mortgage of about 13k would leave me at much less of a risk to increased interest rates. Also I have not actually got another job yet and think that I would be protecting my 'savings' by paying off my mortgage with them should I not get another job soon.
    Am I thinking along the right lines :confused:
    Thanks for reading
    Official DFW Nerd Club Member #37 Debt free Feb 07
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