Cash in endowment and pay off mortgage??

supercharged

We have an endowment with Standard Life left over from our first house purchase, when we moved to this house we continued with the endowment but went repayment on the mortgage for this house. All going well in February next year what we have left to pay on this mortgage will be less than the surrender value on our endowment. The big question is do we wait until the endowment matures in Sept 2013 and receive terminal bonus or do we cash in the endowment and pay off the mortgage. Currently our mortgage stands at £17900 and the endowment is at a surrender value of £16900.

dunstonh

Currently our mortgage stands at £17900 and the endowment is at a surrender value of £16900.

What ist he current value of the endowment?
how much are you paying each month?
What is the mortgage endowment promise value (usually given as a range)?

newdud

I am in a similar situation as i am thinking of cashing in my endowment plan to make a capital payment on my mortgage al the surrender value is no where near the mortgage

I have looked into the merits of keeping the endowment going and have come to the conclusion that they are not a very good investment anymore

supercharged

dunstonh wrote: »

What ist he current value of the endowment?
how much are you paying each month?
What is the mortgage endowment promise value (usually given as a range)?

Thanks dunstonh, the basic value of the endowment is £15,000, we pay £38 a month and the value (or though I can't see the word 'promise' anywhere!) is £18,500 to £19,600.

holly_hobby

There is no guarantee of a terminal bonus at maturity, the payment of which is discretionary by the provider and dependant upon the with profit fund surplus post operating provision and addition of reversionary bonuses to live policies.

Standard Life offer an endowment promise (effectively a gte of the min amount that you will receive), which is dependant upon the receipt of red or amber EMV letter, with a reqd return in excess of 6% pa for the policy to reach target.

Here is a SL's pdf explaining the basis of MEP introduction and qualification factors for policy inclusion:- http://ifasok.co.uk/Downloads/BWhmp28203%20(1).pdf.

Hope this helps

Holly

supercharged

It's a a Minimum Cost Plan (80), if that means anything?