Endowment should we cash it in?

pigunderaroof

Had two NU endowments since 1987.
Already complained of miss selling and got 2 grand back on one of them last year.:rotfl:

Now worried about the situation on the finance front like many others so today phoned NU for surender value. It is approx 21000 for both policies or if they matured today would be approx £26000 for both.

We have repayment for 14 grand along side them on fixed rate till next OCT

Should we sell em and go repayment even tho we have paid in for 25 years and I am now 52 years old?

Whats the chance of getting more from companies that buy policies? Why would they pay more than NU for policies that aint worth much?

dunstonh

Do you have a mortgage promise value on them?
Do you qualify for the redistribution payment?
Do you qualify for the special annual bonus being paid in the next three Decembers?

EdInvestor

Post some info on the policies

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
maturity forecasts
Interest rate payable on mortgage

pigunderaroof

dunstonh wrote: »

Do you have a mortgage promise value on them?
Do you qualify for the redistribution payment?
Do you qualify for the special annual bonus being paid in the next three Decembers?

How do I find out as never heard of these?

thanks for input

pigunderaroof

EdInvestor wrote: »

Post some info on the policies

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
maturity forecasts
Interest rate payable on mortgage

2 POLICIES:
POL 1 GSI=£5676 POL2 GSI=£21500

DB ? HOW DO I FIND THIS

SURRENDER VAL AS OF YESTERDAY POL 1 £11.591 AND POL 2 £10.848 (NOT GUARANTEED?)

M/PRE POL 1 £19.76 POL 2 £28.94

M/DATE POL 1JUNE 2010 POL 2 JUNE 2013

MAT FORCAST AS OF YESTERDAY POL 1 & 2 APPROX £13.000 EACH (NU SAID THIS)

FIXED RATE MORT TILL OCT 2010 C & G 6.33%

ALSO FIGURES OUT ON ORIGINAL QUESTION SHOULD BE 28K INT ONLY AND £24173 ON REPAYMENT

THANK YOU

EdInvestor

pigunderaroof wrote: »

MAT FORCAST AS OF YESTERDAY POL 1 & 2 APPROX £13.000 EACH (NU SAID THIS)

Policy 1

if you cashed this in and used the lump sum to reduce the mortgage @6.33% also increasing the mortgage payment by the amount of the endowment premium you would end up with 13,617 at maturity, which is more than the NU forecast.

Policy 2.

If you proceeded in the same way with this one, you would end up with 16,786 at maturity, which is much more than the NU forecast and in neither case are you taking a risk.

I would suggest you get the maturity forecasts in writing however as the 2nd one looks strange. You may also wish to see if you can sell the policies for a higher amount at https://www.apmm.org

Were either of these policies originally taken out with General Accident or Commercial Union?

pigunderaroof

we have the fixed rate untill Oct 2009 and can only pay a small ammount off (am trying to find out how much) so would it be better to stash the surrendered ammount in a high interest account (if one still exists) and wait till Oct 09, then pay it all off?

The policies have alwsy been with NU from the start.

If we let it run the course would NU pay any compo do you think?

We very much appreciate the help and we will write to NU this weekend for exact figures

EdInvestor

pigunderaroof wrote: »

we have the fixed rate untill Oct 2009 and can only pay a small ammount off (am trying to find out how much) so would it be better to stash the surrendered ammount in a high interest account (if one still exists) and wait till Oct 09, then pay it all off?

Yes.

The policies have alwsy been with NU from the start.

OK, this means you won't get any windfall extra payments so no advantage in holding on .

If we let it run the course would NU pay any compo do you think?

No.But ask whether any mortgage promise applies.

pigunderaroof

EdInvestor wrote: »

Yes.



OK, this means you won't get any windfall extra payments so no advantage in holding on .



No.But ask whether any mortgage promise applies.

Thanks very much for help much apriciated

Gorgeous_George

I would surrender them without doubt.

The Premium Bonds would be a safer place in these uncertain times. And I hate Premium Bonds.

GG

pigunderaroof

Gorgeous_George wrote: »

I would surrender them without doubt.

The Premium Bonds would be a safer place in these uncertain times. And I hate Premium Bonds.

GG

Gorgeous answer George and thanks

regards

the Pig