endownment mortgage surrender

shuggler

Iam thinking of surrendering my endownment, it has only 5 years to run but the shortfall at the moment is £8,000 and i dont think it will recover in the time left, with the surrender value and some savings to make up what i owe on my mortgage i plan to pay it off, what i want to know are there any risks involved in doing this, is there anything i should watch out for. First post on this forum so hope i'am in the right place, thank you

Robert_Sterling

Was one of the conditions of your mortgage that you should have an endowment policy?

shuggler

No it carried over when i re-mortgaged back in 2003

Braders0121

[FONT=&quot]Hi

Have not used this site before, so not sure if I am posting my query in the right place, but any help would be greatly appreciated.

I have been reading the threads regarding RSA/Phoenix endowment policies, and facing a similar situation myself.

My Homebuyers Endowment policy was originally taken out with Royal Life in 1995 (taken over by Phoenix), details as follows;
Maturity date: 12.05.2014
Basic Sum !!!: £16,608 with profits
Guaranteed min death benefit: £32,500
Monthly premium : £89.25 per month

Bonuses are added to this policy as follows:
Bonus: £3,019.82 on maturity
Terminal Bonus: 8% on maturity (based on the total of both basic sum assured plus above bonus)

Have requested a settlement figure from Phoenix - £14,754.00 as at 24/04/09.

The target amount of this policy should have reached £32,500, however recent statement 20/02/09 forecasts’ projected amount as £21,800 therefore a shortfall of £10,700 (based on 3.75% growth each year).

With only five years left to run I don't believe this policy will recover the £24,000 needed to repay the capital element of my mortgage and think I would be best to settle now.

Other option is whether I could sell to a third party, is there still a market for this kind of policy.

Please help! [/FONT]

Fiver55

Hi, I've also got five years to run on my endowment and I've tried selling it to no avail. I don't think companies want to know if its not longer term or a fairly large amount. Good luck though if you try and it works.

gwarren_2

I too had a shortfall on my endowment policy, and had approximately 6 years left until the end of the mortgage, owed 19500, although this doesn't sound a lot I had been paying the mortgage for nearly 20 years, I took a gamble and sold it through a broker for £11000 I then took a bank loan out at a good rate, and paid the mortgage off, I took it over the remaining amount of years left, as though it was a mortgage, but at least i could say i was mortgage free, and the house was mine, as it was an unsecured loan, at least i could sleep at night, not worrying where i was going to find all the money.