Stick or Bust?

Lewie

Hi all.
Some advice if you please.
I'll attempt to keep this simple, please do the same with the answers :-)

Age = 45 (nearly)
Married
Kids = 19&14

Lender = C&G
Mortgage = £24,500.00
Term left = 15 years
Type = Endowment
Prop Value= £220,000 approx

Question;
I have been told that my endowment (surprise surprise) will fall short.
What are my best options?

A. Sell the endowment and take out a repayment
B. Keep the endowment and take out a repayment
C. Do nothing as £24,500 is likely to be a negligable loan in 15 years
D. Use some of the excess value of the house to invest (somewhere?)
E. None of the above
F. Go down the pub

As i have 15 years left i can't see how anyone knows how good or bad an endowment will perform.
I am also thinking of buying a property to do up and sell.
It must be a midlife crisis or something.
Thanks for any help on this.

JoeK_3

Lewie wrote: »

Hi all.
Some advice if you please.
I'll attempt to keep this simple, please do the same with the answers :-)

Age = 45 (nearly)
Married
Kids = 19&14

Lender = C&G
Mortgage = £24,500.00
Term left = 15 years
Type = Endowment
Prop Value= £220,000 approx

Question;
I have been told that my endowment (surprise surprise) will fall short.
What are my best options?

Who is the endowment provider?
Is it woth profits or unit linked?
How much is the shorfall?

Lewie wrote: »

A. Sell the endowment and take out a repayment

let's have the above information first.

Lewie wrote: »

B. Keep the endowment and take out a repayment

Subject to the above, I would convert the shortfall to a repayment

Lewie wrote: »

C. Do nothing as £24,500 is likely to be a negligable loan in 15 years

I would not ignore the shortfall

Lewie wrote: »

D. Use some of the excess value of the house to invest (somewhere?)

No!

Lewie wrote: »

E. None of the above

No

Lewie wrote: »

F. Go down the pub

Seems a good idea!

Lewie wrote: »

As i have 15 years left i can't see how anyone knows how good or bad an endowment will perform.

Not true. We in the industry tend yo know the good provider and the bad ones and can advise accordingly.

Lewie wrote: »

I am also thinking of buying a property to do up and sell.

Good idea! Where would the money come from and how much?

Lewie wrote: »

It must be a midlife crisis or something.
Thanks for any help on this.

Aren't we all ;-))

JoeK

Lewie

Hi Joe
Thanks for the reply.
I shall dig out the info about the endowment and post back.
The 'buying a property and doing it up' part would involve D but you answer no but say it is a good idea.
Does that mean it is a good idea if i don't use the house value or is short term investment like buying to do up and sell not really classed as investment?
Told you to keep it simple :-)

Here is the info
Provider = LTSB (huh, who else with a C&G mortgage i suppose)
Type = Unit Linked
Shortfall = £12,680 @4% £6,680 @6%

They admitted misselling but said that if i transfered the endowment to the mortgage and took out a repayment then i wouldn't lose anything so i wasn't entitled to compensation.
Disgrace, they made the 'mistake' they shouldn't expect me to spend my time sorting it out for free. No doubt i payed them to sell me the mess in the first place!