Amber Alert!!

rothers

Hello everyone,

I have just got a letter in relation to my endowment which states "Amber Alert" - significant risk of endowment not covering mortgage!

It is with the Police Mutual, they have changed their projections to 3% 5% and 7% from 4,6 and 8%. The 5% shows a shortfall of £5k. Their projections have been reduced due to the current market conditions.

The statement is from 1st Jan 2008 to 31st Dec 2008, now that the markets have recovered somewhat from 31st Dec 2008 do people think that the shortfall will be covered? The endowments finish in 2024 and are about 10 years old. It is the first letter that I have recieved that did not say Plan On Track!

Thanks for any advice/opinions!

dunstonh

now that the markets have recovered somewhat from 31st Dec 2008 do people think that the shortfall will be covered?

Still around 25% down on the high point and property is still down significantly on high point. Fixed interest is about break even.

How is yours invested at present?

rothers

Hi, thanks for your reply! The letter doesn't tell me how it is invested at present, only that there is a risk of a shortfall.

Thanks

rothers

Can anyone please help??

EdInvestor

Post some info about the endowment

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

You may need to phone them for some of this info

rothers

Hi Ed, I have 2 endowments with them, they are as follows...

One to cover £20,000

Guaranteed sum assured todate £13,346.16
Declared bonuses £202.16
Surrender value Not sure yet
Monthly premium £47.58
Maturiity date 20th May 2024
Maturity forecasts 3% £16,400 5% 20,300 7% £25,100
Interest rate payable on mortgage Lifetime tracker 0.17% above Base Rate

2nd Endowment to cover £70,000

Guaranteed sum assured currently £43,449.13
Declared bonuses £1,442.13
Surrender value Not sure yet
Monthly premium £128.01
Maturiity date 26th April 2024
Maturity forecasts 3% £51,400 5% £64,600 7% £80,500
Interest rate payable on mortgage As above

Thanks very much, I appreciate your help

LeeSouthEast

To be fair, anything can happen between now and 2024. I shouldn't get too worried just yet.

rothers

Thanks for your reply Lee, I thought things may be ok but I am not sure. I posted on here to get the opinions of people who know more than I!

Cheers

PS Is your username related to the website LSE (London South East)??

LeeSouthEast

Oh don't take anything I say as gospel! Good grief there would be trouble then. I'm merely saying that who the heck knows what the markets will do in the next 15 years. There's a lot of recovery time yet. PMAS are pretty on the ball in my experience.

And in answer to your question: No. It's just that my name is Lee and I live in the South East

rothers

Bump, Ed, can you help from the above info?

Cheers

EdInvestor

rothers wrote: »

Bump, Ed, can you help from the above info?

Cheers

Not without surrender values, but your mortgage rate is so low it's a foregone conclusion - you will be better to stick with the endowment for the time being and review when rates rise.