Endowment Mortgage Dilema - Help!

Donstar

Hi,
Currently have a split Endowment/Repayment Mortgage. Mortgage is about £50,000 of which £37,000 is done with an endowment policy (1 x £30,000 & 1 x £7000) both ending in 9 years time. Policies are with Standard Life and are not expected to cover the cost of my endowment part of my mortgage. My current fixed rate with G&G ended in December so I fell onto the Variable Standard Rate, but have an offer of a fixed deal (valid for 4 months) with the drop in my payments I've been overpaying the endowment part.
I dont trust Financial Advisors as I thing they're only out to sell you something to get commission, same goes for these so called advisors in the banks.
Should I do any of the following -
1. Cash in my endowments and pay off as much as I can and just put the remaining onto a repayment mortgage.
2. Stop paying my endowment, leaving it to mature full term, transfer payments across to repayment.
3. Continue paying endowment, continue with endowment part of mortgage and take out a new repayment motrgage in 9 years to cover the outstanding balance.

Any other ideas? (apart from the lottery :-)

dunstonh

I dont trust Financial Advisors as I thing they're only out to sell you something to get commission, same goes for these so called advisors in the banks.

Advisers in the bank are financial advisers. The type of adviser you need is an IFA. Dont mix up real advisers with sales based advisers. (another thing the FSA messed up on was allowing salespeople to be called advisers making it harder for consumers to know the difference). An FA couldnt answer your query anyway. Only an IFA can formally.

1. Cash in my endowments and pay off as much as I can and just put the remaining onto a repayment mortgage.

An analsyis of the costs and benefits of keeping or getting rid of and the quality of the endowment need to be done to answer that one.

2. Stop paying my endowment, leaving it to mature full term, transfer payments across to repayment.

Its an option that needs to be costed and compared as per 1.

3. Continue paying endowment, continue with endowment part of mortgage and take out a new repayment motrgage in 9 years to cover the outstanding balance.

same as 2.

EdInvestor

Posts some info about the endowments

Guranteed sum assured
Declared bonuses
Surrender value
Montrhly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage

Donstar

EdInvestor wrote: »

Posts some info about the endowments

Guranteed sum assured
Declared bonuses
Surrender value
Montrhly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage

Hi,
Will all that info be on the yearly statement letter from Standard Life? I'l look them out over the weekend and see what they reveal.

Thanks

EdInvestor

No, you'll have to ring up for the maturity forecasts and surrender value.

Donstar

I've got 2 Endowments both with Standard Life

1 - £7000 - Matures 01 Oct 2018 - £18.26 per month - Total value on 01 Dec 2008 £2174.83 - Total Value 01 Dec 2007 £2252.31. Return Forecast Low Rate - £4910.00, Mid Rate - £5,600.00, High Rate - £6380.00, Target £7000

2. £30000 - Matures 01 Dec 2017 - £36.90 per month - Total value 01 Dec 2008 £7926.57 - Total value 01 Dec 2007 £9143.95. Return Forecast Low Rate - £14,300.00, Mid Rate - £16,400.00, High Rate - £18,900.00, Target £30000

I'll call this week and find out the surrender value.

Mortgage runs til Oct 2018.

Thanks

EdInvestor

Please update the forecasts as well .

Donstar

EdInvestor wrote: »

Please update the forecasts as well .

That is the latest forecasts from their annual letter - Jan 09

Do you want me to ask them for it again?

EdInvestor

It may be necessary as policy values were recently cut in the annual bonus round.

Happychappy

Hi

I have two Standard life endowment policies

Bit of a long story but unfortunately I was sold two Standard Life endowment policies by an IFA. I took out my mortgage in October 1983 and a further house loan in March 1984. However, for reasons best known to my IFA in July 1984 I took out another Standard life endowment for exactly the same value as the first one (Oct 83) and the first one was cancelled.

I remember querying it at the time and was told it was purely a clerical matter and not to worry as it would all still carry on the same? I was 19, and not very savvy ; ( nothing changes

Anyway, over the last few years when the endowment bubble collapsed and I started to get amber and the red letters, I remembered about having the third policy which was cancelled so wrote to SL explaining my mortgage was taken out in October 1983 and a follow up endowment to cover a loan in March 1984, however, all the documents only relate to the second policy maturing on 13th March 2009 and the main mortgage on 10th July 2009.

SL only have record of the first policy being cancelled and the second being taken out. As far as they are concerned I had life cover from October 83 to July 84 when the second policy started a further twenty five years, they have no records so the policy does not pay out till July

The first policy (The extra loan) matures on Friday and will be about 12% short, the second policy matures in July, and I would if possible like advice as to whether to pay it up.

Target amount 19000
Current value 14257
Final total including bonus should I wish to pay it up today 15495
Maturity date 16/07/2009
Around 20% short of target

Should I now hang on to July or cash it in now? the final bonus was last cut on 1st Feb,are there further cuts to come before now and July ?

Thanks

Happychappy

Happychappy wrote: »

Hi

I have two Standard life endowment policies

Bit of a long story but unfortunately I was sold two Standard Life endowment policies by an IFA. I took out my mortgage in October 1983 and a further house loan in March 1984. However, for reasons best known to my IFA in July 1984 I took out another Standard life endowment for exactly the same value as the first one (Oct 83) and the first one was cancelled.

I remember querying it at the time and was told it was purely a clerical matter and not to worry as it would all still carry on the same? I was 19, and not very savvy ; ( nothing changes

Anyway, over the last few years when the endowment bubble collapsed and I started to get amber and the red letters, I remembered about having the third policy which was cancelled so wrote to SL explaining my mortgage was taken out in October 1983 and a follow up endowment to cover a loan in March 1984, however, all the documents only relate to the second policy maturing on 13th March 2009 and the main mortgage on 10th July 2009.

SL only have record of the first policy being cancelled and the second being taken out. As far as they are concerned I had life cover from October 83 to July 84 when the second policy started a further twenty five years, they have no records so the policy does not pay out till July

The first policy (The extra loan) matures on Friday and will be about 12% short, the second policy matures in July, and I would if possible like advice as to whether to pay it up.

Target amount 19000
Current value 14257
Final total including bonus should I wish to pay it up today 15495
Maturity date 16/07/2009
Around 20% short of target

Should I now hang on to July or cash it in now? the final bonus was last cut on 1st Feb,are there further cuts to come before now and July ?

Thanks

bump....any views