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RSA/Phoenix homeplan surrender

Hi, I have just requested surrendering a policy with Phoenix and am awaiting the forms.

I just wondered if anyone can advise me whether I am doing the right thing as the surrender value has gone up (since Feb 2012) by approx £6K, does this mean it is finally going to start achieving something or am I right to surrender and use the money to reduce the mortgage?

I have a red alert shortfall as the policy was for a mortgage of £89950 but the projections are a shortfall of between £13850 and £31050. Any advice gratefully received!

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Another option is to make the policy paid up, i.e. pay no further premiums. You would at least then receive a terminal bonus on maturity of the policy. That's if they are being paid I should add.
  • Thanks Thrugelmir, I appreciate your reply, hadn't considered that option but will do now.
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