remortgaging advice wanted

kingstreet

jackomdj wrote: »

Worth thinking about an offset mortgage. This will be at whatever rate now but once you get the endowment you will be able to offset the full value (or a high value) of your mortgage. It will mean you are not paying interest on your mortgage, you still have your money accessible if you need it.

... and the money saved on the endowment premiums and the interest saved on the offset will be useful in clearing any shortfall which remains.

EMac_2

Should you decide to surrender the endowment just remember that this is also your life cover so you will need to replace that if you want to protect your debts. Another option with your endowment is to auction it which can sometimes be a better option that surrendering but it depends on the type of endowment it is. You can find out more here http://www.apmm.org/ but I would speak to an IFA before making any decision.

jackomdj

Not a professional but I would be apprehensive selling your endowment this close to the end of the policy, especially if it has profits added at the end.

Remember the companies who buy these do so because they expect to make a profit on them. So whatever you sell to them for they are predicting that they will get a better return for their money.

kingstreet

It's a unit-linked policy, so there should be no final bonus and there is no market to sell such a plan as the surrender value and market value are exactly the same.

The OP should still take advice to ensure all the bases are covered, but it's a bit more clear-cut than it is for a with-profit contract.

jackomdj

kingstreet wrote: »

It's a unit-linked policy, so there should be no final bonus and there is no market to sell such a plan as the surrender value and market value are exactly the same.

The OP should still take advice to ensure all the bases are covered, but it's a bit more clear-cut than it is for a with-profit contract.

I just read it as unlinked ie not linked to their mortgage

kingstreet

Sorry. My eyesight isn't what it was.

I read it as unit-linked.

Is it a with-profit plan, or is it unit-linked?

Do you get unit statements each year,showing the number of units, the unit price and the current value, or bonus statements which talk about a guaranteed basic sum assured, annual bonus and final/terminal bonus?

saejtin

Yes with-profits (and not used currently for mortgage).

kingstreet

The suggestion remains the same.

Seek professional advice about the loss of bonus/value by early termination, or sale.

saejtin

Yes will follow that suggestion:)

saejtin

Mmm, apologies but even after some googling I don't really understand the offset mortgage. Could you explain it a little more please perhaps in terms of what elements we pay and when we pay them?