Need Help, should we sell our endowment?

owey

Hi,
We have got a With Profits Standard Life endowment which matures in jan 2013, If we cash it in we will use the money for a conservatory, as we now have a repayment morg.

Target was £18,995
cash in value 1st feb £9,425
Minimum payout £10,810
MEP between £278 and £417 or nil
3.75% £11,300
5.50% £12,100
7.25% £12,900
Monthly payment £24.27
total future payments are £1,140.
We are just thinking with the lower VAT rate and some good offers around on Conservatories we would save money by cashing in now, rather than take a chance on the plan going nowhere and conservatory prices going up in 2013?.
If we do sell, should we cash it in with Standard Life or sell it to somone else?.

EdInvestor

Please update the surrender value and projections.What interest rate are you paying on the mortgage (doesn;t matter it's not connected).

owey

EdInvestor wrote: »

Please update the surrender value and projections.What interest rate are you paying on the mortgage (doesn;t matter it's not connected).

The value's I quoted were only sent to me last week, will have to ring them for a new one. My mortgage rate is 5.34 on a 10 year fixed with 8 years left. we moved house and had to take a 25 year mortgage on it, with 23 year left:eek:.

owey

Just found out from Standard Life our endowment if cashed in today is worth £8,934. They wouldn't tell me the projections over the phone
Is it worth cashing in now or keep paying paying till 2013.

EdInvestor

owey wrote: »

MEP between £278 and £417 or nil
3.75% £11,300
5.50% £12,100
7.25% £12,900

If you cashed in the endowment now and used the lump sum to reduce the mortgage and also increased the mortgage payment by the amount of the endowment premium, then your return at maturity would be £12,284.

Given that the above projections are likely to be over-estimates, then the guaranteed return as above is likely to beat the risk based return on the endowment, so you are losing out by taking a risk.

So suggest you bin this policy (replace life cover first if needed).You could try to sell it here but the market is pretty moribund these days, it is said.

https://www.apmm.org