how to sell an endowment ?

worri

we want to sell our with-profits endowment and use the money from that plus savings to pay off the mortgage.
the policy has about 5 or 6 years to run and the amount the company are offering is not great . how do we find a good company to sell the endowment to?
also has anyone any idea what kind of penalty the bank (santandar- alias Abbey national as was) are likely to charge for us ending the capital debt side of the mortgage with them?

sorry we we are rather clueless about this and cannot afford an IFA
many thanks in advance for any advise

dimbo61

Is your mortgage fixed or on the lenders SVR ?
Have a look on the internet for companies that buy old endowments
Why do you need/want to clear the mortgage now ?

worri

hi, thank you for replying.
we want to clear the mortgage. its a significient debt and would be one worry less.
i don't really understand what you mean by your question. all i know is we borrowed the capital to buy the house from what was abbey national and we pay them interest and the endowment was set up to repay over 25 years with general accident who are now aviva. we've been able to make some capital repayments over the years so have reduced the capital owing.

I've been looking at a company called ESP are they any good? reliable? pay up?
thank you

HarveyGal

You need to check your paperwork, or phone Santander, to find out what penalties may be due if you repay your mortgage early. Different borrowers have different deals.

Have you checked whether your Aviva endowment possibly has a mortgage promise payment -I think that is what is it called? Some endowments have an extra sum, possibly payable at their end, that Aviva will pay to cover any shortfall, as predicted by the figures in 1999 (I think). I don't know if General Accident policies get this, my policy originated as Norwich Union.
Aviva cannot tell you if you will definitely get this sum until three years before it is due to be paid, but is can be a considerable sum. If the endowment is surrendered early, the promise amount will not be paid to you.

You need to look at your figures and try to work out the potential gain or loss to yourself.

worri

thank you. going to talk to bank today and try and get more info.
if at all possible we do want to pay off this mortgage - even frankly if it costs us- as the relief of being debt free would be tremendous and I don't trust that endowment company as far as I could throw them so its kind of bird in hand situation for us.- and would cut monthly outgoings significently making life a lot easier as our income is low.