Advice please.....

annie12

Hi, Myself & OH have an endowment taken ut in 1991 & due to mature in 2016. It was supposed to cover our original mortgage of £35100.
We will be lucky to get £17000 in 2016.
It isn't linked to our mortgage anymore & is just savings.
Our mortgage is currently £106000 and we are overpaying £500 pcm.
My question is do we cash in the endowment £9000 today & use it to overpay the mortgage......we would incur a £300 penalty doing this?
Or do we just keep paying the £54.40 pcm into the endowment until it matures?

Thanks
annie

nw_man

Tough one.

On the one hand if you cash it in, you save the monthly payments PLUS interest on the £9000.

On the other hand, who knows how it is going to perform in the next 6 or 7 years ?

Also, dont forget it will have life cover of the original target amount ( I assume £35100 ). If you cash it in, then that ceases too.

annie12

nw_man wrote: »

Tough one.

On the one hand if you cash it in, you save the monthly payments PLUS interest on the £9000.

On the other hand, who knows how it is going to perform in the next 6 or 7 years ?

Also, dont forget it will have life cover of the original target amount ( I assume £35100 ). If you cash it in, then that ceases too.

Thanks nw_man, we don't need to worry about the life cover as we have enough without it.

I was thinking that the most we would get is £17000.
We would save £54.40 x 84 = £4569.60
Also we would save the interest on the mortgage.