Endowment- raising cash now

sleepymans

I wonder if anyone could help...
Have joint with profits endowment policy with spouse, due to mature in Jan 2008 expected to be around £30k - not tied to current repayment mortgage.
However, urgently need to raise a largeish sum - around £15k now due to severe reduction in income. (no equity in property available for 2nd mortgage or increased mortgage)

Would it be best to ask ins co for a loan on the policy (do these still exist?), try to assign it to the bank in exchange for a reasonably priced bank loan, sell the policy or surrender it now?

Credit rating is excellent now but very recent loss of income means more than minimal repayments would be a problem.

Any ideas anyone please ?

dunstonh

No-one can comment without knowing the factual information about the endowment. What penalties exist on surrender? Is it with profits or unit linked? When in January does it mature (v important with many companies announcing bonuses in January and that is when they can take a jump upwards).

Selling will not be an option available to you.

sleepymans

Thanks Dunstonh

I suppose what I'm asking is theoretical:

Would a bank give a low cost loan if I assigned the policy to them (They get the cash back - guaranteed)

Would an assurance/insurance company give a reasonably priced loan against it for say £15k?

Why could we not sell the policy on? I thought endowment policies had an open market value? Dont those firms - that buy policies as an investment, exist anymore? Is it no longer legal or anything?

I apologise for my ignorance on this.