Should I cash in my endowment with only a couple of years to run?

jsx501

Hi All,

I'm a freshly signed up member - have been meaning to do this for ages as I want to know what to do....

I successfully claimed back £2k in interest from my mortgage provider for miselling my endowment. I have cleared my mortgage a while ago, but I am still paying into the endowment £78 p.m. and I only have 3 years left to run out of the orginial 15.

My question is, should I continue to pay into the endowment right up to the end or cash it in now? They did make me an offer amount on redeeming the whole thing. The reason I've hung onto it is that i heard that if you cash it in early you lose out due to set up fees?

Help?!!!
:T

Any ideas or comments greatfully received.
JSX

maninthestreet

With only 3 years left, you are not cashing it in early. What redemption figure were you given by the endowment provider? How does this compare with the projected value of the endowment when it ends in 3 years time?

dunstonh

an answer was given to your previous post asking the same thing.

jsx501

Thanks i'm new to the site - had a look today for any responses and struggled to find my post - hence new thread today. I'll try and find your orginal response

Plus will dig out deails on the projected value.
Cheers
JSx

dunstonh

basically, we need more info. Provider, funds, projections, values...

Bargainhunteress_2

Hi Jsx, out of interest when you received your compensation, did you reduce your original outstanding mortage before you received your compensation payment? I tried to claim for misselling which was upheld but my endowment company wouldn't give any compensation because I had reduced my original loan amount substantially.

katecheshire

Bargainhunteress wrote:

Hi Jsx, out of interest when you received your compensation, did you reduce your original outstanding mortage before you received your compensation payment? I tried to claim for misselling which was upheld but my endowment company wouldn't give any compensation because I had reduced my original loan amount substantially.

That seems strange because what has your loan got to do with your endowment provider? You could have paid off your whole mortgage but still be paying your endowment premiums for various reasons (eg life insurance). When I got divorced, I continued to pay half the endowment premiums (ex paid other half) even though we had paid off the mortgage it was taken out to cover, as there were only 5 years to go out of 25. At the end of the term we shared the proceeds.

dunstonh

That seems strange because what has your loan got to do with your endowment provider?

Its not strange. If a repayment mortgage had been in place, then paying money off would have reduced that as well. So, the comparison is between the two on a like for like basis.

When I got divorced, I continued to pay half the endowment premiums (ex paid other half) even though we had paid off the mortgage it was taken out to cover, as there were only 5 years to go out of 25. At the end of the term we shared the proceeds.

If you had put an endowment missale claim in, then it would only have been calculated to the point it was linked to the mortgage. After that, it is disregarded.

When you complain about being sold an endowment you are saying that you would have gone repayment mortgage. So, the calculation compares it against that. If you change the mortgage in some way, then it would have changed regardless of the method. So part repayments or redemption are taken into account.