Endowment- Should we sell and pay off our mortgage?

dave_f_4

We bought our first house in 1992 when we took out our endowment. We have since bought our second house but have converted our mortgage to a repayment mortgage. So the endowment is really a savings policy (!!). We have sufficient separate life cover for both of us.

We fixed our mortgage on 01/02/2007 for 5 years at 5.79%. It ends on 28/02/2012. The loan amount was for £83,176 and the term of the loan was for 11 years and 3 months.
There are early repayment charges to the loan (at 5% if repaid before 28/02/2008, 4%if repaid before 28/02/2009, 3% if repaid before 28/02/2010 2% if repaid before 28/02/2011 and 1% if repaid before 28/02/2012 of the amount borrowed.)
We are considering the possibility of trying to pay off our mortgage in 3 years. In May we can accrue £28,000 if I combine savings of £5,000.00, a regular saver of 6,000.00 (matures in May, £ 500.00 per month at 10%), dividend in April for £6,000.00 and an ISA at £11,000.00. If we sell the endowments and combine our savings is it worth our while paying the penalty and get out of our fixed term contract? In our loan contract we can pay off 10% per year without incurring penalties. I have paid off £3,000 this financial year.
Our endowment details are as follows.

Life Office: General Accident
Start date: 07/12/1992
Maturity date: 07/12/2017
Basic sum assured: £16,055.00
Total bonuses: 8048.30 (up to and including 31/12/2008)
Gross Premium £64.05
Surrender value: £15,053.20

We have been given a firm offer for 15,440.09, two firm cash offer of £15,300.00, a valuation at auction of 16,215 and an expected selling range of between 15,967.67 and 16,301.00 all from different companies.
We also have a second policy
Life Office: General Accident
Start date: 04/08/1998
Maturity date: 04/08/2023
Basic sum assured: £6,923.00
Total bonuses: 944.30
Gross Premium £29.93
Surrender value: £3,251.60

We have had no offers for this policy!

We can continue to pay the same Payment every month, in may we could add on the £500 we pay into the regular saver.
We would be very grateful for any advice.

Linda and Dave

Robert_Sterling_3

The optimum date for paying off a lump sum is as soon after 28 February 2009 as is convenient to you. The 3% fee is quite reasonable when you consider that you will benefit again and again each year for 9 years. I would do it with some or all of the £28,000.

I leave to others the question about cashing in other financial products.