Should I cash in my Endowment?

too_much_debt

Hi

I bought a shared ownership property in 1996 and had an Endowment mortgage, I sold the house in 2002 to move in with OH but kept the Endowment, it is now linked to our mortgage on our house that we bought in 2005, the fixed rate runs out in June/July and OH wants to get a 100% Repayment mortgage.

I owe £27k+ on my credit cards, am a SAHM and can't get a job because my OH works shift work and every other weekend, I am registered with HMRC as I sell on Ebay as a Business, the interest alone this month on all 7 of my cards is £268.90 so need to do something to get this down.

I am thinking of cashing in the Endowment early as it has another 12 years or so to run before it matures (is due to pay £31,350 but is not on track), I have paid 13 years so about £9k and I know I won't get back what I paid in but am wondering if it is best to cash this in to pay off of my debt and then use the £57.04 I would pay to that to pay more of the credit card or if I should leave it to run.

How do I go about cashing it in, do I ring up or do I have to write and ask them how much they will pay out?

Hope this makes sense, thanks for any replies.

TMD

EdInvestor

Ring them and get/post the folllowing info:

Providers name
Guaranteeed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest payable on credit cards (rough average)
Interest rate payable on mortgage

Do you need the life cover provided with the endowment?

too_much_debt

Thanks, will ring them up this week, it is with Prudential and is a With Profits Endowment, meant to pay out £31,350 but is now not on course to achieve that much. I pay £57.04 a month. It is due to expire on 1 May 2021.

dunstonh

but is now not on course to achieve that much.

How do you know?

Pru have the best success rate and over 90% of their endowments have hit target. Many of which had projected examples that indicated they wouldnt hit but still did. With yours being 11 years away, its really hard to say what it will do.