Endowment Advice

debtfreeglee

I would like someone to confirm that what I think is correct in my head makes financial sense please!

I have an endowment due to pay out £46,000 in 2022 towards my mortgage which ends in 2027. It currently has an amber alert with £5,000 defecit.

I am thinking about cashing it in at a value of £23,000 which would pay off several debts giving my the opportunity to invest £300 a month into a cash ISA which in 15 years time could pay out approx £60,000 and resulting in my mortgage being my only debt.

Financial sense or have I got no idea??!!

dunstonh

Financial sense or have I got no idea??!!

Without knowing details of the endowment it is hard to say. However, many endowments, even those in shortfall, are still performing better than cash ISAs. The fact yours is a just a paltry £5000 off at this stage suggests it is not too bad. Plus, the recent volatility on the markets could be a good thing for you. (we need to know about the endowment and investments to really say).

There could be merit in what you are suggesting but it could also be an expensive move (cost of replacement life assurance, surrender penalty, loss of any Mortgage Endowment promise etc).

opinions4u

Who is the policy with?

Does it have any sort of "Mortgage Promise"?