Underperforming Endowment

Edw65

I have an endowment (jointly with my wife) with 11ys remaining due to pay £100k in 2024. Currently has a surrender value of £33k and am considering us surrendering and paying the lump sum off mortage and reverting the rest to repayment..and putting the £207 premium toward those payments..Mortgage rate is currently 1.25% above base so 1.75% for term...thoughts or guidance much appreciated!!E

Thrugelmir

What's the current forecast maturity value?

Rather than surrendering the policy. Maybe worth making the policy paid up. This means that the policy will continue to benefit from declared bonuses. Though no further premiums are payable. Paid up values are normally higher than surrender values.

Edw65

Thanks..Its an Adaptable Endowment Plan ex Allied Dunbar with a projected value (at 4%) of £78.4k..ie £22k less than needed!

maninthestreet

£207 x 12 x 11 = £27,324. So, surrender value + £27,324 = £60,000 approx. But if you keep paying the premiums until maturity, and it reaches the projected value, you get £78.4K, so you are better off by just over 18K.