Redemption of Endowment policy

Pink_Lady2

Hi there I'm new to this so hope I'm doing this right!

We have an endowment policy which we took out in 1996 to cover our mortgage being told when it matured 25 years later it would cover the £98,000 we owed. Obvioudly since then things have gone pear shaped and it potentially isn't forecast to reach that amount now. We've been lucky enough to pay off quite a lot of what we owe but still owe around £50,000, payable in 2021. My questions are these:

1. To date payments of £250 per month into the policy (total approximately £49,250) is less than the current surrender value of the policy which is £42,695.

2. Future payments into the policy for the remaining term is £22,000.

I know nobody has a crystal ball to see the future but wondered if we should cash it in now and save the £22,000 left to pay?

Or does it look like the market will improve so much that we will get the "telephone number" payout we were told we would possibly get?

McKneff

Someone will be along who knows a lot more than me about this sort of thng but I would say that you would have to have some sort of life cover for your mortgage if you cancelled/cashed in your policy, you already have this within your endowment policy, people tend to forget that you are paying for this within your monthly payment. You would have to take that into account when you do your calculations.

Dick_here

I'd cash the endowment in, reduce the mortgage by whatever the surrender value is and increase your monthly payments by £250 too. Problem pretty much solved.