Endowment.... Cashing In???

FatDickie

I have a £35,000 mortgage, which has gradually been moved over the past few years from Interest only to capital and interest (repayment).

I am 2 months away from the end of a 2 year tracker mortgage with Nationwide. The mortgage term has 9 Years left to run.

I still have two endowment policies which were originally taken out to pay off the mortgage.

The first is with Cornhill taken our in Jan 89 for 25 years for an original target amount of £28,000. The premium is £44.90 and ends Jan 2014.

The other is with Guardian, taken out in Aug 91 for an original target amount of £12,000. The premium is £25.53 and the end date is Aug 2016.

The Cornhill is currently projected at £24,200 if it were to grow at 6% and the Guardian one £11,900.

I was pondering cashing them in when my tracker finishes, paying off a large lump of my mortgage, leaving a much smaller balance, which by changing the period thet my mortgage has left to run, could be payed off over a few years.

Leaving me Mortgage Free. :j

On top of that I would be saving £70 a month in insurance premiums. which could be paid to the mortgage company.

Over the period the two policies have left, I have worked out that these premiums will cost me around £6.5k in total.

The only thing is I wouldn't have the lump sum from the two policies to look forward to in 7 and 9 years time, but I would have an additional 4 years without a mortgage.

1. If I were to cash in these policies early, roughly what sort of amount would I get....15k, 20k 25k?

2. The Cornhill policy is now changed to Phoenix (a Resolution Company). I see from earlier postings that this might be a bad thing. Why?

3. Is it better to go through one of these brokers that buy the policies?

Cheers

FD

EdInvestor

Post some info about the policies

Guaranteed sum assured
Declared bonuses
Surrender value ( ring up and ask)
Monthly premium
Maturity forecasts

Expected interest rate payable on mortgage

frugalwelshman

I seem to be in a similar position as fatdickie, in that I have recently reached a position where I can pay off my mortgage early.:beer:

original amount borrowed £13,500 (endowment)
outstanding amount 10,700 (£50 monthly overpayment for about 5 years)

endowment surrender value £9046
endowment best offer £9838 (still looking for a little more, any suggestions?)

my real dilemma is, how do I almost pay off the mortgage but leave enough debt so the mortgage company hold my deeds for me and I avoid the early repayment fee of £175?