We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Selling Endowment on
catlover48
Posts: 54 Forumite
OK, this all seems a bit too simple to me so I've probably got things wrong. I made a claim for mis-selling and have been offered two choices by my ins.co
A) reduced offer of £1,727 and keep my policy or
Total offer of £27,213. and cancel policy. I had decided to take the 27k but I went on line to APMM which I found on here, 'just to see' I got a letter this morning from one of the companies who buy policies, offering me £26,670 for it. This is where I'm a bit dim, can I accept the reduced offer from my ins.co of £1700 then take this other firm's offer ? if I can, that makes £28,397 I would receive to reduce my mortgage. Can it work like that ?
A) reduced offer of £1,727 and keep my policy or
Total offer of £27,213. and cancel policy. I had decided to take the 27k but I went on line to APMM which I found on here, 'just to see' I got a letter this morning from one of the companies who buy policies, offering me £26,670 for it. This is where I'm a bit dim, can I accept the reduced offer from my ins.co of £1700 then take this other firm's offer ? if I can, that makes £28,397 I would receive to reduce my mortgage. Can it work like that ? 0
Comments
-
yes it can,I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
You can do that. If you do, calculate the monthly repayment mortgage figure for your current outstanding mortgage amount and either increase your mortgage payments to that amount or save or invest the difference. You may also need to replace the life assurance that was in the endowment deal.
If you were happy with investment risk, you might consider placing the money in stocks and shares ISA investments instead of using it to pay off part of the mortgage. Or even cash ISAs for some of it, since they can have a higher interest rate than the mortgage. Which makes sense, if either, will depend on the time left to the end of the mortgage and your current tolerance for volatility.
Whether it makes sense to sell will depend among other things on the possible terminal bonus from the endowment, assuming it's with profits. Not enough information to comment on that.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards