Maximum Investment Plan

spinner111

My husband bought a 25 year MIP (Equity 3) with Sun Life Financial of Canada in 1991. We pay £40 a month into it and have a £30k interest only motgage depending on it. It's current value is £10,500. I know absolutely nothing about these but am nervous that we're wasting our money. Is this something we should continue paying or would it be better to surrender it now and extend our repayment mortgage?

Any advice much appreciated.

dunstonh

You dont come across MIPs much nowadays. Mostly obsolete, expensive and modern alterantives are better. Unless there is some contractural reason, tax reason or charges that make it worth keeping, then you should look to compare against modern alterantives to see which is better.

MIPs were not designed to be used in conjunction with mortgages. £40pm (which is probably being generous) over a 25 year term would be lucky to get £20-25k.