Time to Sell Endowment?

Time2Go_25

Sorry but yet another "Should I sell my Endowment" question.

Bought in 1989 with Sun Life now part of Phoenix, not good I know.

Target Amount £37500
Basic Sum £12458
Maturity 1/Feb/2014
Current Bonuses £5785.46
Premium £47.61
Surrender Value: £14559

Should I stay or should I go?

Cheers

EdInvestor

Can you post some maturity forecasts? Also, what interest rate are you paying on your mortgage?

Time2Go_25

Proejcted amounts are:

3.25% - £21400
4.00% - £22400
5.00% - £23900

Target amount was £37500 so quite a shortfall.

Two mortgages at the moment

70000 interest only at base - 0.16% tied until 30/09/07
82000 repayment at 1.8% discount no tie in.

I've sent an enquiry to APMM are there any others I should consider?

Any help appreciated.

EdInvestor

Sorry can you give me the average interest rate you're paying please.

Time2Go_25

70000 interest only at base - 0.16% tied until 30/09/07, rate is 5.34%
82000 repayment at 1.8% discount no tie in, rate is 5.84%

The idea is to consolodate them into a single product at the end of September after the end of the tie in period.

EdInvestor

pdel61 wrote: »

Proejcted amounts are:

3.25% - £21400
4.00% - £22400
5.00% - £23900

K, if you surrendered the policy and used the lump sum to reduce the mortgage @ an average interest of 5.5% also increasing the mortgage payment by the amount of the endowment premium, at maturity you would have a return of 26,081, well ahead of the endowment and gauarnteed, no risk.This doesn't include any cost you might incur for replacing the life cover if required.

I've sent an enquiry to APMM are there any others I should consider?

No, this is the trade association for all the reputrable buyers.It's unlikely you will get an offer for a zombie policy like this one.

Time2Go_25

Many thanks