Keep or Surrender Endowment - Please Help!

jolly-jen

I would really appreciate it if anyone could give me any advice regarding our endowment policies. The situation is as follows:-

Endowment Mortgate £40,000 with Scottish Widows.
Maturity date 2013.
Surrender value £18,216.00.
Projected figures 4% £28,000.00, 6% £31,400.00 8% £35,200.00
Compensation offer £3277.00
Payments £101.00 per month (endowment only)

We also have a second policy
Endowment policy £30,000.00 with Scottish Widows
Maturity date 2012
Surrender value £15,592.00
Projected figures 4% £21,300.00 6% £23,500.00 8% £25,900.00
Compensation £546.00
Payments £40.00 per month

Would you recommend cashing both policies in to pay the mortage off which would give us approx £37.500, which we then pay off the remainder of the mortgage in cash, doing away with it completely.
Or would it be wiser to cash in the larger endowment and turn the remainder into a repayment mortgage cutting our losses now?
Or would it be better in the smaller endowment policy. Also does our compensation offer compare similar to other company's misselling offers?
Would really appreciate any help and advice?

wymondham

I'm not in any position to give financial advice, but we cashed our endowment in (got £14k) and paid a lump sum off our mortgage, and are about to remortgage and get a repayment mortgage for the whole lot. We got sick of the will it/wont it letters coming through and the very high monthly payment for something which probably would not pay out the full amount..... I'm sure someone will be along to crunch the figures and let you know which way to go - hopefully you're endowment is better than ours!