Endowment problem

Taiko

Just a bit of advice really needed on what we can do.

Took out mortgage and endowment policy in 1991, over 25 years so due in a few years time.

There's still currently £30,000 on the mortgage, but we have just found out a few things about the endowment.

- After 18 years of paying in, it has gained £500 based on what we paid into the endowment.

- The person who sold the endowment to us is currently serving time in prison for fraud. This only came to light this week, as did the amount the policy is worth.

We are likely to have a shortfall as it stands in the region of £20,000. What would be the best way, other than selling a kidney, to sort this mess

dunstonh

This only came to light this week, as did the amount the policy is worth.

What happened to the annual statements and projections that told you the risks of shortfall?

What would be the best way, other than selling a kidney, to sort this mess

start putting aside £200pm or overpay your mortgage by that amount. Take advantage of the lower monthly payments you have to close that gap.

Also, get an endowment review as it may be worth calling it a day now and fully switching to repayment.

TREVORCOLMAN

Good advice to overpay. Some of us remember 15% int rates on our Mortgage!

EdInvestor

Post some info about the endowment

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate poayable on mortgage

Taiko

I'll get all the figures together.

Realised how badly worded my first post was. The endowment is actually my parents, who divorced. I'm now trying to buy out my father's 50% claim, and this endowment comes into it.

I'll get all the exact figures together and do the obligatory bump.