should I cash in my endownment policy

jamgirl

we changed our mortgage 3 years ago to a repayment mortgage but kept the policy going as a savings plan. it is linked in no way to our mortgage.

however we have outstanding debts of 10,000 which could be paid off if we cashed it in.
this would also then free up £250 each month.

we are fairly sure this is what we should be doing but thought we should ask on here first!

ailuro2

It depends on what you can get for it,and how long you've had it,how long till maturityetc. I have read it's worth trying a broker to sell it to, instead of cashing it in with the provider.
With debts of 10,000 and paying out 250 a month I see where you're coming from.

Debt usually costs more than savings plans pay, perhaps you could invest the 250 a month into your outstanding mortgage amount once the debt is repaid- if your mortgage allows that level of flexibility.

If I were you I'd phone a few of these redemption companies and see how much they would give you for it.
Hope this helps, I'm sure others will be far more qualified than me to comment,though.;)

donstermonster

Personally i woul ditch the endowment to free up the extra money to reduce your debts.

To save you ringing round lots of companies get your Endowment policy documentation in front of you and spend 10 minutes on

http://www.surrendalink.co.uk/

whereyou can even value what it is worth yourself THEN call for a surrender value to your own Endowment company

best of luck

DMC