Mortgage and endowments

alfonso

I have a mortgage of 26k which I intend to pay off next month with my 30 TF redundancy cheque.
I also have 2 endowments which do not mature until 2012 and 2014.
Both combined cost me approx 70gbp/mnth. Im unsure as what to do next with these. Im tempted to carry on paying the monthly fee until they mature and then the cash would be mine as there would be no mortgage to pay. Or would I be better off cashing them in or selling them now ?
Both at maturity would not cover the outstanding mortgage if I was not to pay it off next month

Regards
Alfie

Thrugelmir

An endowment policy receives what is known as a terminal bonus on maturity. This forms a large part of the ultimate pay out.

With a relatively short period to run to are better off leaving the policies to run their full course.

dunstonh

would I be better off cashing them in or selling them now ?

You havent told us anything about them. We need detail. Endowment is a product type. There are good ones, bad ones and some that are not as clear cut as others (such as those that understate on projections and may look bad but are actually good).

dimbo61

Have you got another job ? what will you live on if no work ?
Benefits people wont be happy if you use redundancy money to clear mortgage and then try to claim benefits.

alfonso

dunstonh wrote: »

You havent told us anything about them. We need detail. Endowment is a product type. There are good ones, bad ones and some that are not as clear cut as others (such as those that understate on projections and may look bad but are actually good).

Both plans are from Axa and are with profit low cost homebuyers plans.
Both are predicted to fall short of the 14k target (11.6k and 11.3k)
my mortgage is split with repayment and interest only

I will not get any benefits as I am taking a pension. Even though I am only 50 my pension scheme rules allows this.

alfonso

Update question
I am going in to pay my mortgage off this week. I only owe 23K but I want the monthly outgoings reduced.
My lender has rang me and suggested I think about NOT paying it off as there will be a £500+ fee to pay for doing so.
Are these early payment fees flexible ? i.e. any tips on how to avoid or reduce them.