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Endowment - sell,freeze or run term
Shaun19660_1
Posts: 10 Forumite
I'm (hopefully) going to a full capital repayment offset mortgage to overide the probable shortfall on my endowment mortgage.
The details are as follows
Endowment with profits £52k - 7 years to run.
Option
1) Surrender value £16838
2) Freeze (or stop premiums) and leave to mature £13760 + bonus £4792
3) Pay up £81pm x 7 years (£6804) and mature (projected value at 5.25% is £30300)
What is my best option? - i'm not keen on paying any further payments, as i would prefer to put this into the mortgage to reduce the capital. Incidentally the mortgage will be £61k over a longer period, so that my basic payments will be lower.
If i stop paying the premiums will the money in the endowment reduce over the next 7 years, that is, will the bonus', or lack of bonus reduce its value further. In other words if it just sits there for seven years, will it or could it, be worth less than its current value.
Thanks
The details are as follows
Endowment with profits £52k - 7 years to run.
Option
1) Surrender value £16838
2) Freeze (or stop premiums) and leave to mature £13760 + bonus £4792
3) Pay up £81pm x 7 years (£6804) and mature (projected value at 5.25% is £30300)
What is my best option? - i'm not keen on paying any further payments, as i would prefer to put this into the mortgage to reduce the capital. Incidentally the mortgage will be £61k over a longer period, so that my basic payments will be lower.
If i stop paying the premiums will the money in the endowment reduce over the next 7 years, that is, will the bonus', or lack of bonus reduce its value further. In other words if it just sits there for seven years, will it or could it, be worth less than its current value.
Thanks
0
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