Using endowment to part pay off mortgage

Featherstoner

Many thanks to JoeK and Mayb for their thoughts. You appear to be saying what I thought - and that is to part pay off my mortgage using the Phoenix endowment.

While I understand the reasons in paying more off it I don't want to get rid of my FP policies as I feel much more comfortable with some cash in the bank for a rainy year ! In addition there is a 3% penalty for early repayment for the next 2 years.

Incidentally - on the theme that this thread seems to have been diverted on Phoenix are projecting on 3.25%, 4% & 5.25%. "These rates are lower than those set by the FSA because the fund is invested predominantly in lower risk fixed interest securities which have a lower growth potential than the FSA assumes when setting its rates. Our view is that 4% each year is currently a reasonable assumption for the rate of long term future investment growth"


Again, many thanks.

JoeK_3

Featherstoner wrote: »

Many thanks to JoeK and Mayb for their thoughts. You appear to be saying what I thought - and that is to part pay off my mortgage using the Phoenix endowment.

While I understand the reasons in paying more off it I don't want to get rid of my FP policies as I feel much more comfortable with some cash in the bank for a rainy year ! In addition there is a 3% penalty for early repayment for the next 2 years.

Incidentally - on the theme that this thread seems to have been diverted on Phoenix are projecting on 3.25%, 4% & 5.25%. "These rates are lower than those set by the FSA because the fund is invested predominantly in lower risk fixed interest securities which have a lower growth potential than the FSA assumes when setting its rates. Our view is that 4% each year is currently a reasonable assumption for the rate of long term future investment growth"


Again, many thanks.

All the very best to you and may I apologise for losing my temper with certain individuals, whilst trying to guide you.

Dont forget that if you do overpay on your mortgage, it should be on the interest only element.

JoeK

EdInvestor

Featherstoner wrote: »

Incidentally - on the theme that this thread seems to have been diverted on Phoenix are projecting on 3.25%, 4% & 5.25%. "These rates are lower than those set by the FSA because the fund is invested predominantly in lower risk fixed interest securities which have a lower growth potential than the FSA assumes when setting its rates. Our view is that 4% each year is currently a reasonable assumption for the rate of long term future investment growth".

It's a With profits endowment then.Almost certainly you should surrender it, but as mentioned earlier if you want a proper check, post the figures

Mr_helpful

Featherstoner in his opening post says it is NOT a with profits policy. and if memory served me correctly they didnt have a unitised with profits fund 12 yrs ago (could be wrong) The most common fund then I think might have been the sun life distribution fund which would have been fairly low in equities. Is it not possible to switch funds? What to is a good question as stock markets are looking shakey. Its interesting to note that with only 4 yrs (1/4 of the term) and at only 4% its projected to increase in value by 50%