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Endowment Question - keep, cash or use?
polr
Posts: 176 Forumite
Hello,
When I was 19 I took out an endowment (and interest I think) mortgage (right before they advised against it). After I moved our next advisor suggested just keeping the mortgage going but treat the endowment as a savings account as it was unlikely to cover the mortgage at the end.
The result is that for the last 13 years I have been payingt £82 a month for what feels like nothing so I am wondering:
1) whehther to keep it on and hope I make back my money at least
2) whether to cash it in (won't get much I don't think but will at least save £82 a month)
3) whether, as we are due to rethink the mortgage, we shouls use the endowment int he mortgage again knowing full well we will have to make up any difference at the end of the term (another 12 years) but saving the interest on the £40 endowment in the meantime
Does that make sense? Not sure I understand them fully but to my mind those are my options. Does anyone have any other ones or any advice on what's a good move as I'd like to be better informed before going to see a mortgage advisor.
Thanks in advance.
When I was 19 I took out an endowment (and interest I think) mortgage (right before they advised against it). After I moved our next advisor suggested just keeping the mortgage going but treat the endowment as a savings account as it was unlikely to cover the mortgage at the end.
The result is that for the last 13 years I have been payingt £82 a month for what feels like nothing so I am wondering:
1) whehther to keep it on and hope I make back my money at least
2) whether to cash it in (won't get much I don't think but will at least save £82 a month)
3) whether, as we are due to rethink the mortgage, we shouls use the endowment int he mortgage again knowing full well we will have to make up any difference at the end of the term (another 12 years) but saving the interest on the £40 endowment in the meantime
Does that make sense? Not sure I understand them fully but to my mind those are my options. Does anyone have any other ones or any advice on what's a good move as I'd like to be better informed before going to see a mortgage advisor.
Thanks in advance.
0
Comments
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What is the current surrender value of the endowment?
What is the value of your mortgage?
What sum was the endowment supposed to reach?
When was it supposed to reach this?
What is the latest projection compared to these figures?
What is your income and expenditure level?
Is the endowment a "with-profits" one? If so, what has the annual bonus rate been for the last 3-5 years?
What is the terminal bonus?
Is there any market value adjustment if you surrender it early?
Devil's in the details.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
ahhhhh, ok, so I have a lot to research!0
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