Endowment shortfall idea.

carl.odom

I have an endowment that matures in 4 years that needed to earn £34,000 towards paying off my mortgage, I have been informed by the endowment provider that there will be a short fall of around £16,000, I have been offered £18,500 from an endowment buying company. The current surrender value from the endowment provider is £17,600.
What I have been thinking of doing is paying £18,500 lump sum of my mortgage which would leave me with £32,000 left on the mortgage, the interest rate on the mortgage is currently 0.99% and is with the woolwich for 13 more years, I am currently paying £44 a month for the endowment if I add this payment of £44 to my monthly mortgage payment of £180 I think I can pay my mortgage off in the remaining 13 years and cover the endowments short fall. Any advise greatly appreciated.

dunstonh

Who is the provider?
what is the current value/position?

carl.odom

The endowment provider friends provident the value is £16.700

castle96

please, who is still buying Endowments ? I thought al lthe Coy's had stopped>>>

Bettie

carl.odom wrote: »

I have an endowment that matures in 4 years that needed to earn £34,000 towards paying off my mortgage, I have been informed by the endowment provider that there will be a short fall of around £16,000, I have been offered £18,500 from an endowment buying company. The current surrender value from the endowment provider is £17,600.
What I have been thinking of doing is paying £18,500 lump sum of my mortgage which would leave me with £32,000 left on the mortgage, the interest rate on the mortgage is currently 0.99% and is with the woolwich for 13 more years, I am currently paying £44 a month for the endowment if I add this payment of £44 to my monthly mortgage payment of £180 I think I can pay my mortgage off in the remaining 13 years and cover the endowments short fall. Any advise greatly appreciated.

What if you die?

Thrugelmir

If the policy has 4 years to run. I don't understand why you are being offered £18,500 now for a policy with a surrender value £16,700. Yet you would have a shortfall of £16k on maturity. Would appear that you are selling yourself short. As the buyer obviously sees value and a return.

What is the projected maturity value of the policy? Is there an entitlement to to a non-guaranteed terminal bonus.

carl.odom

The current value of the policy with guaranteed existing bonuses is £16.788.63, there are no guarantee for final bonuses. The current surrender value is £17.610.92, the current projected plan is worth at 4% growth £19.700, at 5.5% growth £21.600 and at 8% growth £25.000, this still at best leaves a short fall of £9.000, the £18.500 is a rough estimate from a company that buy endowments, I am waiting written confirmation of that final figure, my mortgage is for £52.000 and is a part endowment and part repayment mortgage, the endowment only covers £34.000 0n death, I have an insurance policy that covers me for £40.000 on death, so as long as I pay £12.000 off the £52.000 I am covered against sudden death, so I don’t require the death cover on the endowment, looking at it now maybe I would be better to wait 4 years take what I get from the endowment with any final bonuses pay the lump sum off the mortgage and up my monthly payments on the mortgage for the final 9 years.

castle96

who is still buying endowments please

carl.odom

I did a google search and found, (selling my endowment. co. uk )they take your details and get back to you with an offer, still waiting for offer.

casey_junior

A friend who is currently going through separation proceedings has recently had an offer to buy the house she owns jointly with her ex.
The (very small) mortgage will be paid off from the sale of the house.
There are two very very small endowments which mature next year, both of which are projecting shortfalls in maturity value. Her question is whether it is worthwhile continuing to pay money (jointly) into these or just stop paying, would it make much difference?

DVardysShadow

casey_junior wrote: »

A friend who is currently going through separation proceedings has recently had an offer to buy the house she owns jointly with her ex.
The (very small) mortgage will be paid off from the sale of the house.
There are two very very small endowments which mature next year, both of which are projecting shortfalls in maturity value. Her question is whether it is worthwhile continuing to pay money (jointly) into these or just stop paying, would it make much difference?

Start a new thread? Please?