anyone cashed in endowments and moved to repayment?

njb2808

We've been advised by an IFA to cash in our 3 endowments and move completely to a repayment mortgage (we're part re-payment,part interest only at the moment). It's attractive as it means we'll reduce our mortgage by £25K and removes the worry of the endowments falling short at the end. The endowments have between 11 and 15 years to run and were supposed to realise £67K, though they're all beeing forecast to fall short.
We're on a mortgage deal that's coming to an end so are looking to re-mortgage anyway. Has anyone else followed this route, and, if so, what's your experience been?
Thanks

BACKFRMTHEEDGE

We changed to a repayment mortgage in 2002 when we moved house. Prior to this we had 2 endowment policies; 1 taken out in 1987, one taken out in 1993. The one taken out in 1987 is pre-1988 Finance Act so unable to claim compnsation on that - so this is still ongoing as a saving vehicle. Received compensation for 1993 policy inorder to put us where we would have been if we'd had a repayment mortgage all along: so compensation + cashed in value of policy was paid off the mortgage. A Result. No more horrible annual statements showing pifiling bonuses either. And I could sleep at night. Bliss. :j Defintely no regrets here.

BACKFRMTHEEDGE

Oh by the way repayment mortgages are great to because you can overpay them and watch them get smaller and smaller. :money:

alanobrien

We cashed in 3 endowments last year when we moved.
We used the cash toward the bigger place and switched to a repayment mortgage.

For us it worked out well as ours were with legal & General so the payback wasnt bad.

I much prefer the repayment mortgage, at least i know where i stand with it and its not subject to the vaguaries of the market and investment managers.