Should I cash in endowment and put it against my offset mortgage?

JimSpriggs

OK I have two under-performing endowments and would like some smart person to tell me if I'm better off leaving them alone and hoping for the best or cashing in now and putting the cash in my offset mortgage. My mortgage is now completely on repayment so I don't need these to cover it but was holding onto them as a nice bonus! Here's the details:

1st
Start: Nov 1991
Matures: Nov 2014
Premium: 51.35 pm
Target: 29,000
Surrender value: 10374 as of last week

2nd
Start: Jun 1989
Matures: Jun 2014
Premium: 42.97 pm
Target: 30325
Surrender value: 11788 as of last week

Mortgage:
SVR Offset 5.7%

Here's hoping someone with a bigger brain than me can give me some advice.

dunstonh

who are they with?
what is current value?
what are the investment funds?
what are the projections?

JimSpriggs

Right I have this information now:

who are they with? HSBC
what is current value? 9245 & 10512
what are the investment funds? HSBC Balanced Fund
what are the projections? Still waiting for this but obviously not going to be great!

Is this enough information to figure out my best options?

JimSpriggs

Bump. Anyone willing to advise?

dunstonh

cannot give any discussion without figures.

JimSpriggs

The figures are there, read back up the thread. What more do you need?

dunstonh

The projection figures are needed. They give an indication of the charges and cost of life cover on a unit linked endowment.

The fund you have are unlikely to underperform. Of course, no guarantees but you generally find balanced managed funds offer the potential to hit the target growth rate. They will be showing shortfalls now but that wouldnt be unexpected and that doesnt mean it wont hit target. Indeed, it is times like these that are highly beneficial for long term regular contribution investments as you are buying units so much cheaper and when it goes back up, these will be the ones that make the most money.