Endowment and mortgage

d87heaven

I have a standard life endowment that I pay £21 a month into.
Currently its worth £5330
Projected value at maturity dec 2017 is £8810

So 100 months of premiums @ £21.24 = £2378.88

Adding that to the surrender value makes it £7708.88

There is also the standard life mortgage promise to consider(if that is worth anything apart from the paper it was written on!!)

I am buying a house (£135k with a £45k deposit) and wonder if I should cash in the endowment and pay off £5330 of the mortgage amount (ie add it to my deposit)

OR

should I get a small portion of the mortgage on interest only and use the endowment

OR

Should I just laugh it off and blow the endowment on wine, women and song!!!

Any other ideas most welcome.

EdInvestor

What interest rate are you paying on the mortgage?Please also post the full set of projections.

Is the surrender value a recent one?

d87heaven

Thanks for the reply Ed. Hope this helps..........

Interest rate is 5.99% fixed for 2 years

I haven't got the paperwork projections yet but over the phone the maturity value was
Low £8810
Int £10100
High £11500

The surrender value was from yest.

d87heaven

Anybody?

EdInvestor

d87heaven wrote: »

Prjections yet but over the phone the maturity value was
Low £8810
Int £10100
High £11500

.

If you cashed it in and used the lump sum to reduce the mortgage, also increasing the mortgage payment by the premium amount to maturity, your total return would be 11,985, with no risk.

Definitely not worth keeping.

d87heaven

You sir are a star!

Thanks