Converting to Repayment

henryhallsdanceband

1st post - so apologies as this will have no doubt been addressed 1,000,000 times before - so I'm happy if you just point me at the post I need.

I have 5 yrs of a 25yr endowment policy left to pay a bit of my mortgage. In the last two years the projection has gone from red to green. Projections are that it will have a maturity value to pay of the loan at the lowest of the three FSA recommended bands. I have just successfully got some ££££s out of them for misselling. With 5 yrs to go should I surrender and convert to repayment or stick with the endowment. I thought the advice was to stick with an endowment once you've been in it for a while.

EdInvestor

Post some details of it

Company it's with
Surrender value ( ring up and ask)
Guaranteed sum assured
Declared bonuses so far
Monthly premium
Maturity date
Maturity projections

I thought the advice was to stick with an endowment once you've been in it for a while.

This used to be the case before around 5 years ago, but in many cases it no longer applies, due to changes in the economic environment, the financial regulations and the state of health of the insurance sector.

Often it is now more sensible to surrender the policy and use it to reduce the capital owed on the mortgage, and then divert the endowment premiums to overpaying every month.It may not be necessary to convert to repayment, though it's always sensible to review your existing I/O mortgage to see if it is at a competitive rate.

There are a few exceptions though, so give us some details so we can check whether yours is one of them.