Help! We need to dig ourselves out of a hole.

dwsjarcmcd

These are unilt linked policies therefore they cannot be sold. GRE Homebuilder charges were very heavily loaded in the early years, however, they have long since passed. Also GRE's managed fund, which was the default fund for the product was 98% equities so will have been badly hit by recent event.

Whether you keep or cash depends on your view of the stockmarket between now and 2013. Over the years the price of the units you have purchased has been depressed. This now means that you have more units than would have been the case had you had consistent growth.

If you believe the stockmarket will recover, keep the product, as it will recover performance to some extent. The converse is true

David

Head_in_the_Sand_2

David. Yes that is what we thought. Now .... if only we had crystal ball !!!

Do you know the ironic thing is that when we took out the policies they were against a Guardian Staff Mortgage and we were told they were the way to go as they were the best thing since sliced bread!

dwsjarcmcd

Head_in_the_Sand wrote: »

David. Yes that is what we thought. Now .... if only we had crystal ball !!!

Do you know the ironic thing is that when we took out the policies they were against a Guardian Staff Mortgage and we were told they were the way to go as they were the best thing since sliced bread!

I know what you mean, I sold them as a Life Consultant for GRE in the broker market and had them against my staff mortgage!! Surrendered mine years ago.

David

dimbo61

I never had an endowment mortgage ( uncle told me not to have one ) so its up to you at the end of the day.
Lots of things to consider
1 interest rate on £77,600 is 2.5% NOW what will it be in 2/3 year
2 Even if both endowments return 8% figure you are still well short of repaying the mortgage in 4 years.
3 do you have to pay ERC if you pay lump sum off IO mortgage ( call lender )
4 Why do you want mortgage paid by 2013?
5 I pay about £1500 a month and have a smaller mortgage than you WHY because I want rid of mortgage ASAP
6 I would still sell the endowments and clear part of the mortgage and work at overpaying mortgage and filling ISA,s and regular savers because I would know where I stand and would every month be reducing my debt.
7 the current deal is very good at the moment so dont change mortgage just overpay and save until deal ends.
GOOD LUCK

Head_in_the_Sand_2

Thanks for all the replies. I guess we'll have to talk to our lender and have a good think about where we go from here.