Do I pay it Off

sweet_charriot

I am sorry if this at times appears a little vague but I do not have all the facts.
Some months ago I needed to borrow £9000 to assist my Son. In order to do this I borrowed against 3 Endownment type savings which also offer life Insurance linked in. The interest rate on the loan was 7% APR.
One of the policies is due to mature at then end of this month and I am now in a position where i could pay the loan off the settlemt figure being just over £9000. The policy maturing is worth £6165 and if I do not pay off i am still getting £1800 of that policy.The other 2 policies linked to the loan mature in 12 months or so with these policies you do not get penalised as bad as with a Private Insurance company if you surrender.
My thoughts are I am paying £230 a month for the policies so should I consider paying of the total loan collect the full maturity on the one policy and then surrender the other two take the cash and loose outgoings of £230 a month. I do have other life cover so do not need that side.Thanks for any help.Posted this under loans and savings before possibly wrong sections.

minimike2

You need one of the IFAs here really, but the thought that springs to my mind is the loss of any terminal bonus.

sweet_charriot

minimike2 wrote: »

You need one of the IFAs here really, but the thought that springs to my mind is the loss of any terminal bonus.

Yes that was one of my concerns but I do know their policies are not doing that well and wondered if the saving of £230 a month would probably offset this.

sweet_charriot

Bump in the hope of assistance.