HELP please on fixed rate and endowment

woody18

I am looking for a 5 year fixed rate mortgage and have been advised to cash in my endowment and use the money as a lump sum and then make over payments to clear my mortgage sooner. Is this advisible or should I carry on paying my endowment which still has 12 years till maturity.
Any advice appreciated.

RufusA

Who gave you that advice and what reasons did they give? Why do you doubt their advice?

A reputable financial advisor should be able to give you an informed opinion based on the surrender value, possible final value and your attitude to risk. There is no general rule as to whether it's worth surrendering, making a policy paid up, or continuing one.

If you do surrender it, you may need to make additional provision for any life cover it provides.

Rufus.

dunstonh

have been advised to cash in my endowment and use the money as a lump sum and then make over payments to clear my mortgage sooner. Is this advisible or should I carry on paying my endowment which still has 12 years till maturity.

One assumes that the advice has come from an IFA as they are the only ones legally able to give that advice (with the exception of a minority of tied salesforces on their own product range and permission from their employer).

If it hasnt come from an IFA then its not advice but opinion and carries no legal protection (unless its a tied agent acting outside of their authorisation, in which case it becomes a breach of rules).

On the assumption it is an IFA, then they would know the policy details whereas we dont. So they are in a much better position to give you that advice. Plus, their advice is regulated, authorised and gives you consumer protection. Ours doesnt as its just an internet site with a load of unknowns posting discussion.

Dick_here

Dunston is right - that this is only an opinion - but I'd not be holding onto an endowment that hasas long as that to go.