Advise please on cashing in Norwich Union endowment....

jumbopants

Hi All..

I'm 15 years into a with-profits Norwich Union endowment to cover 42.5K over a 25 year period...

My house is worth around 300k and my mortgage is with Nationwide for 69k..

Was on a fixed rate of 3.99 which ran out in April and I'm now on 6.49 variable.. I also have the mortgage split as 42k interest only which the endowment is surpose to cover and the balance on repayment

Based on the above interest/repayment split my mortgage is £487 per month, it use to be £349 per month when fixed at 3.99 plus I have to pay the £55 p/month for the endowment..

My question is, would I be better to cash in the endowment and use what ever I get to reduce the oustanding £69k on my morgage and put the full balance of my mortgage on repayment ?

I went to see the HSBC and they have told me I will have no problem switching from Nationwide to there no fee 5.89 tracker

Would welcome any feedback, if cashing in the endowment and going fully repayment would be a good idea ? And also how much approx the endowment after 15 years with 10 to run would be worth.. ?? The chances of me getting 42.5k from the endowment is remote me thinks... Also where is the best place to sell the endowment ? As I'm sure I'd get more to sell it rather than surrender ?

If I could get around 20K cash in value, I would only have a 50k mortgage balance, which I could then pay off as a repayment over 10years which on the HSBC mortgage calculator is only £553 per month..



Many thanks in advance for any help/advice

dunstonh

My question is, would I be better to cash in the endowment and use what ever I get to reduce the oustanding £69k on my morgage and put the full balance of my mortgage on repayment ?

NU are about to pay out a special payment for qualifying plans are have also announced a 3.6% special bonus to be paid in December for the next 3 years. That is on top of the normal bonus rates.

So, with that in mind, if your plan is a qualifying one for these, it is probably a bad time to get rid of it.

Also, most NU plans are not that far off track (when all bonuses, suitable growth rate and mortgage promise value are considered). However, only an individual analysis would be able to work that out.

EdInvestor

Assuming this is an NU plan ( not ex Gen Accident or Comm Union) and thus not eligible for a windfall, then post some info about it so we can see

Guaranteed sum assured
Declared bonuses
Surreender value
Monthly premium
Maturoty date
Maturity forecasts