We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Endowment Shortfall advice "Please"
PATCHES53
Posts: 2 Newbie
My £13,000 Endowment Mortgage ends in December 2014.
I claimed compensation when I became aware of the shortfall but in all honesty it was such a small amount.
My monthly premium is £40.80.
The projected shortfalls are (as of December 2008):
Low rate of 4% each year
Projected final amount - £8,490
Projected Shortfall against Target amount - £4,510
Middle rate of 5.75% each year
Projected final amount - £9,250
Projected Shortfall against Target amount - £3,750
High rate of 7.5% each year
Projected final amount - £10,000
Projected Shortfall against Target amount - £3,000
The view of Phoenix is that the Middle Rate of 5.75% is their reasonable assumption for the long term future investment growth.
My question is this:
I am able to pay my mortgage using my War Disability Pension. This pays more than my mortgage and there is always money left over in the account that the mortgage is paid from. It's with Santander/Abbey. I also have another very small amount of money paid in to that account that helps to keep it topped up.
That account (as of January 2009) currently has £2,360 in it and increases by roughly £60 a month.
What is my best option?
To carry on as I am and pay the short fall from this account? - I have to be honest that is my preferred option (unless someone tells me otherwise) because of my financial situation.
Abbey said that one option is closed to me because of the length of time left to run on the Mortgage.
I claimed compensation when I became aware of the shortfall but in all honesty it was such a small amount.
My monthly premium is £40.80.
The projected shortfalls are (as of December 2008):
Low rate of 4% each year
Projected final amount - £8,490
Projected Shortfall against Target amount - £4,510
Middle rate of 5.75% each year
Projected final amount - £9,250
Projected Shortfall against Target amount - £3,750
High rate of 7.5% each year
Projected final amount - £10,000
Projected Shortfall against Target amount - £3,000
The view of Phoenix is that the Middle Rate of 5.75% is their reasonable assumption for the long term future investment growth.
My question is this:
I am able to pay my mortgage using my War Disability Pension. This pays more than my mortgage and there is always money left over in the account that the mortgage is paid from. It's with Santander/Abbey. I also have another very small amount of money paid in to that account that helps to keep it topped up.
That account (as of January 2009) currently has £2,360 in it and increases by roughly £60 a month.
What is my best option?
To carry on as I am and pay the short fall from this account? - I have to be honest that is my preferred option (unless someone tells me otherwise) because of my financial situation.
Abbey said that one option is closed to me because of the length of time left to run on the Mortgage.
0
Comments
-
Post some more info
Guaranteed sum assured
declared bonuses
Interest rate payable on mortgageTrying to keep it simple...
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards