Should I cash in my Standard Life Homeplan?

mac_dr

First time poster!

Hi

I currently have a HOMEPLAN savings plan with Standard Life.

*Started plan 2000- due to mature 2023 (originally taken out to cover £6000 on a previous mortgage)

*Initial target value was £6000
*Current premiums £20.12 per month (inc £6.10 for life cover and critical illness)

*Total value Jan 2013 = £3823.16 (inc final bonus £60.06)

Projected growths forecast
[FONT=&quot]- [/FONT]Lower rates = £7550.00
[FONT=&quot]- [/FONT]-mid rates = £8870
[FONT=&quot]- [/FONT]Higher rates = £10400

I now have a full repayment mortgage, so although I originally took this plan out to cover a previous mortgage I don’t particularly need this £6000 in 2023 anymore.

I also don’t require the critical illness cover or life cover as I have this covered elsewhere.

I could do with the current surrender value of £3823 to cover some costs of building work we are having done.

My question is should I cash in this endowment to use the £3823 now or see the plan out to the end and take out a loan to cover the building costs. (The cheapest loan I can find is currently around 6.9% APR for £5000 over 3 years with monthly repayments of £155 – total amount repaid over 3 yrs £5594.00.)

My main concern is whether I will lose out on a.) any terminal bonuses if I cash in early or b.) any greater returns in the last 10years of the plan.

Thanks for any help or advice.

Mac dr