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  • FIRST POST
    • BlueSocks
    • By BlueSocks 18th Oct 16, 10:03 PM
    • 2Posts
    • 0Thanks
    BlueSocks
    Paying off mortgage but what about endowment policy?
    • #1
    • 18th Oct 16, 10:03 PM
    Paying off mortgage but what about endowment policy? 18th Oct 16 at 10:03 PM
    Hello, this is my first time on MSE so I hope I'm posting in the right place. It would be great if someone could help with a query I have about paying off my mortgage.


    I currently have a mortgage of £27k. My mother passed away earlier this year and I have inherited enough to pay this off but if I do what would be the position with the endowment policy - will this continue or could I cash it in? Our mortgage was originally £33,000 and we paid £5k off it a few years ago. We have had the mortgage since 1997 so only have 6 years left and not sure if there would be enough in the endowment to pay it off anyway due to the drop in rates (?)
    Thank you!
Page 1
    • Debs65
    • By Debs65 20th Oct 16, 4:13 PM
    • 9 Posts
    • 0 Thanks
    Debs65
    • #2
    • 20th Oct 16, 4:13 PM
    • #2
    • 20th Oct 16, 4:13 PM
    Hi Bluesocks

    Your post could have almost have been written by me!

    Our mortgage was started in 1997 and we have approx £20k left to pay.
    We have been overpaying for a while as we now know our endowment will have a shortfall to pay it all off.
    My OH wants to use our savings to pay it off, but then as you say what is it best to do with our endowment?
    I suppose if we still paid into it, it would be a nice payment to receive in 6 years?
    If we cancelled it, would we get much back as we didn't have it for full 25 years?

    Would be nice to know what other MFW did or are thinking of doing.

    Thanks
    • frugalmacdugal
    • By frugalmacdugal 20th Oct 16, 4:27 PM
    • 5,442 Posts
    • 4,693 Thanks
    frugalmacdugal
    • #3
    • 20th Oct 16, 4:27 PM
    • #3
    • 20th Oct 16, 4:27 PM
    Hi,

    you could look upon the endowment as a six year savings plan, you're in the final stretch now, when it matures, it's bound to be worth more than what you've paid in over the years, and what you are paying per month now is probably 'pennies' compared to when you started and things were maybe hard.

    It's nice to get things out of the way, but the surrender value might not be much, you can ask for a surrender value, which you can decline.

    Another thing that used to be available was to make the policy 'paid up', where you didn't need to pay any more premiums, but still received bonuses.
    Y'all take care now.
    • SueP19
    • By SueP19 20th Oct 16, 4:52 PM
    • 1,697 Posts
    • 14,449 Thanks
    SueP19
    • #4
    • 20th Oct 16, 4:52 PM
    • #4
    • 20th Oct 16, 4:52 PM
    You don't say how much interest you are paying on the mortgage??
    MFiT-T4 #57 £300/£20,000 MFW 2016 #53 £300/£4,800
    Mort Oct 15 £70,353 £66,422 MF Dec 31 Jun 31(191 176 mnths)
    EF 2016 £700/£1,000 Debt May 09 £30,217Jan 16 £17,734
    Tilly Tidy #1 £50.55/£250
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