Cash in endowment..Have i got the figures right?

nyck

I keep reading about people cashing in their endowments early and moving to repayment mortage.From what i've worked out i'll end up paying an extra £20 + a month inc life insurance if i cash in??

It is a Prudential(scot Am) Unit-Linked fund(Managed).It's due to mature in August 2023. The life insurance is for 50k and as of August 2011 has a value of just over 21k, we pay £134.70 per month and their estimated payout on maturity is:
£55200 (4%)
£67100 (6%)
£81500 (8%)

Going by last years figures i've 12 years left 144 months
144 x £134.70 = £19396.80 + Interst only = £31335

If i cash in i'll have £28900 left on the mortgage ,if the moragete rate said the same 1.99%
144 x £220(repayment) = £31680 + life insurance = £33000

If i've got this right i'll have to pay more and lose any chance of endowment Surplus??

One thing that does puzzle me ,if the fund is worth £21k how is that going to treble to £67k(6% growth) in 12 years??

thanks nyck

silvercar

One thing that does puzzle me ,if the fund is worth £21k how is that going to treble to £67k(6% growth) in 12 years??

Value of the existing fund plus the contributions you will make every month for the next 12 years, all growing at a rate of 6% assumed.

If i've got this right i'll have to pay more and lose any chance of endowment Surplus??

You pay more (if your figures are right) but know that your mortgage will be cleared in 12 years time. Or you continue with the endowment and you may have a surplus or you may have a shortfall, nothing is guaranteed.

nyck

I think i'll keep it going for now

thanks