surrender endowment or not (12 more payments)

delw007

Hello, i am new to posting on the forum but have used this site a good while and found it very helpful.
My choice is: went to see Halifax yesterday and was told mortgage of just over 11 thousand to be paid in 5 months. But our with- profits endowment that we have paid 72.18 mthly for 14 years so far will not mature until March 2011. We could decide to either extend the terms of the mortgaage after October till March at a lower rate of 135 monthly(810pound) or surrender the endowment so as to pay the mortgage off. I telephoned Royal london yesterday and was given a estimated surrender value of 10.345.00 if we decided to do that there an then (can change by the time paperwork comes tho)
They said they could not give me any idea what it could be worth with the maturity bonuses added.
Does anyone have any advice on what we should do, if we surrender now and put away till october we will not make anymore payments on the policy so save 432 pounds, but if we extend we pay approx 1600, do you think the policy could get more than this amount in bonuses or should we just give it up now, sorry to go on a bit but head spinning, your advice very much appreciated thank you

dunstonh

oes anyone have any advice on what we should do,

First of all, advice is regulated and this board isnt. So, you wont get advice here. Just comment and discussion.

do you think the policy could get more than this amount in bonuses or should we just give it up now

You are asking us to look into a crystal ball and give an opinion that cant possibly be guessed correctly as we dont know the future.

However, what you can do is work out the cost of early surrender, if any. That is factual information. You look at the current position (guaranteed sum assured plus current and final bonuses accrued to date) and compare that with the surrender value. Any difference in value is the penalty to surrender early. There may be no difference at this stage but there could be.

delw007

0k, thankyou for your reply, i do wish i had a crystal ball, i would not have had to post here if i had, just comments is fine,thought someone might have been in the same kind of position, i just don't want to risk losing 4 or 5 grand for the sake of 1600,and some one might have already been through this and lost out by surrendering early, or by not as the case may be, i will seek professional advice i think, but thanx for the help.