Endowment.please Somebody Help Me Make A Decision

dunstonh

Regarding DH's post about NU endowments, I would normally agree that such a policy might be worth keeping - though it's pretty marginal with interest rates at the level they are today.The TEP trader agrees that it's not a hopeless policy otherwise the offer would not have been made.

I'm not sure whether it should be kept or not. We dont have the info to make that decision. NU projections dont include terminal bonus or the "promise" value so if we rely on projections to make the decision, we are not taking everything into account.

If there are benefits being paid which are means tested then surrendering the endowment could see the benefits reduced or removed and that could cost more than the amount being saved.

So, I am sitting on the fence here as it could be best to keep, make paid up or surrender at this stage. There is not enough info to decide one way or the other.

9shell

EdInvestor wrote: »

OK that explains it, half is the insurance (what a cheek :mad:) and the other part is the higher interest rate.

I suggest you do an internet search, first checking Martin's article, for cheaper buildings insurance.When can you swap policies? At the same time, if you need the life cover from the endowment replaced, look for a cheap deal for that as well.

Then collect all the info on any redemption penalties, so we can see what to pay off first with the endowment money after you've sold it.

Could I just clarify the loan position

Halifax
30k interest only @ 7% no redemption penalties
7k arrears repayment, also @7% ? penalties or not?

Amber
10k topup loan@8%
repayment or i/o?
penalties or not?

Hi EdInvestor.
LOL, I share your anger very much! With myself mostly for not coming here sooner.

Yes thats right Ed, 30k interest only 7% no penalties. I didnt think to ask about the penalties re:arrears, dohh ,I the class dunce, will check back with you tomorrow with all the info including Amber top up loan which is on i/o.

BTW, I cannot believe all the responses, letters then phone calls, Im getting from companies wishing to buy my endowment policy. The highest so far as I mentioned before is around £27,512. I have one company offering to top the highest price.

Thanks again, most grateful.

9shell

[/QUOTE]Is the endowment still in joint names because that would have its own implications

If they are not qualified to give this advice then the are in breach of the financial services and Markets act 2000 as it forbids anyone who is not registered with the FSA to advise on investments

Thank you Mr Helpful, you have raised some questions.

With regards to my ex husband I am indeed aware of the implications as he is joint owner of the property.
I will obviously consult him when the time comes about any decisions I undertake with regards to the mortgage, although he has hardly ever had any financial input in the property, but the law is the law.

At the moment we are very amicable but that could all change direction with the wind as he does have a serious mental health illness and he can and has caused me much problems in the past.

Yes I am thinking of going back to work soon but I have to make sure I can sustain home life and work before I take the leap as my children have had too much disruption already in their lives .

With regards to people who might not be qualified to advise, I am extremely thankful to everyone who are offering their advice in helping me come to which ever financial decision I eventually take.
Ed in particular has opened my eyes to a lot of things that I wasn’t aware of and I feel I am understanding my rather complicated mortgage a lot better because of him.

I have had many sleepless nights worrying about the state of my mortgage and its hard to know what the right thing is to do when you have little knowledge of these factors.
Its good to know their are still people out there who care enough to give up there precious time to help people like me

EdInvestor

Step one is to collect all the info and get an understanding of the existing position IMHO, along with whatever can be easily sorted ( eg the insurance) .

Then we can go about seeing if it can be improved,including making sure your understanding of the effect on benefits is correct and also examining ways of resolving the ex husband problem.

It is all rather complicated, but hopefully at the end, you will end up not only in a better financial position, but also better educated about how to manage money in general.

Mr_helpful

9shell
1) request a meeting with the DSS and check if you are claiming all you are entitled to. Also ask the effect on benefits of repaying part or all of loan. Most means tested benefits will reduce if your outgoings reduce.
2) Is the endowment assigned ( a question no one has asked yet) If it is the lender gets the money and may force you to pay the rest of the loan on a repayment basis. If not and you want to cash it in you probably want it in your sole name which requires husbands cooperation or he could be entitled to half. (the cheque would be paid out in joint names) However be aware you could be giving up a lot of money in the way of bonuses especially with so little time to go. You would also lose life assurance. What happens if husband dies in next 4 yrs? With joint endowment you get paid full Sum Assured. Without, nothing unless you can sue those on this thread that advised you to cash it in.
With you planning to go back to work I would think that it would be unlikely that cashing in the policy was god advice but we cannot advise on this forum what is best. Unfortunately it will be your decision in the end. I hope you get it right for your family

9shell

Could I just clarify the loan position

Halifax
30k interest only @ 7% no redemption penalties
7k arrears repayment, also @7% ? penalties or not?

Amber
10k topup loan@8%
repayment or i/o?
penalties or not?

Hi EdInvestor.

Here is the more accurate information I got this morning with regards to my mortgage accounts:-

Halifax 30k i/o @ 7.250% standard variable rate, no redemption penalties.

Arrears 7k, also @ 7.250%, repayment basis, (of which £3476.63p are the actual arrears the rest are charges interest etc), no early redemption penalties.

Amber top up loan, 10k i/o @ 9.78%, no early redemption penalties.

Asked Amber if they could give me a better offer for this loan, since ive been paying them high interest for 21yrs, they said a flat no this is a standard loan.

Thanks for now, I,ll just keep climbing this steep mountain!!

EdInvestor

Terrible :mad:

Next step might be to try to replace the insurance: here's Martin's guide

Presumably it's not a requirement to get insurance via the lender?
.

9shell

EdInvestor wrote: »

Terrible :mad:

Next step might be to try to replace the insurance: here's Martin's guide

Presumably it's not a requirement to get insurance via the lender?
.

No its not. I will look at changing my insurance today! Thanks for now.