cashing in

bellas_hoose

hi ya can anybody help ! i am morgage free since july 2008 ,worked my backside off and paid £47.00 grand in 2 years, (i was a working mother ) i was thinking on putting a extention on my house abt £30 grand and was wondering if i should cash in a endowment that we kept from our first flat ,it is with scottish provident ,it matures in 2012 and we also have our current house endowment which matures in 12 years or should we go for a morgage or loan ! thanks for looking

mr_mortgage

bellas_hoose wrote: »

hi ya can anybody help ! i am morgage free since july 2008 ,worked my backside off and paid £47.00 grand in 2 years, (i was a working mother ) i was thinking on putting a extention on my house abt £30 grand and was wondering if i should cash in a endowment that we kept from our first flat ,it is with scottish provident ,it matures in 2012 and we also have our current house endowment which matures in 12 years or should we go for a morgage or loan ! thanks for looking

OK, I assume you've decided you really need the extension.

If so ... you first should get an idea of what it is actually going to cost. These days, you should be able to beat the builder down on his price heavily.

As for cashing existing endowments - that's a pretty personal decision. Interest rates are low at the moment, so perhaps if you shopped around and found someone who was willing to lend you the money (it will be below some lenders minimum) you could take a fixed rate for as short a term as you could afford to, knowing how much your extension will actually cost when it's paid off ... not how much the builder charges you. Once you've done that, you could assess whether you feel it would be better to cash in or borrow.

Mr M.

bellas_hoose

thanks for getting back to me ! i have been offered a loan from our bank ,it is pre approved the apr is 9.9% ,but i have a probelm paying that much ,as i have never had credit before ,apart from my morgage ! waiting for endowment people to get back ! and i think i will ask my ma for a loan ,as the bank loan is nearly 10% ! perhap a remorgage would be better ! the extention is £30 grand

SandC

If you managed to pay off £47k in two years then maybe a loan would be a better idea as you can pay it off quicker? Obviously you'd have to do the sums but 10% over 3 years say is that going to work out cheaper than whatever fixed rate over 10 years or more?

EdInvestor

Post some info aout the endowments

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly remium
Maturity date
Maturity forecasts