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Clear mortgage or keep endowment
gadjah543
Posts: 218 Forumite
I currently have a Nationwide mortgage on BMR 2.5% and have 70k outstanding. It is part and part with 49K on interest only and the rest on repayment due to be repaid in late 2018.
The endowment policy to pay off the interest only part is currently worth 35.4k and has the potential to reach low 50.5k int 54.9k and high 59.8k(it was originally meant to cover 65k but we changed our repayment part a long time ago to cover the shortfall) This obviously assumes that I pay the future payments which total 10,577. I should also be eligible for the SL promise of between 2.5-4.5k
We have recently inherited 45k and initially thought to cash in the endowment and clear the mortgage in full but when I checked how the policy was projecting it has made me doubt that I am doing the right thing.Does anyone have any opinions on what is the best course of action.
The other thing is the policy is unit linked with SL managed fund performing much better than the life with profits.Can I ask to transfer more of it into the better performing fund.Thanks in advance.
The endowment policy to pay off the interest only part is currently worth 35.4k and has the potential to reach low 50.5k int 54.9k and high 59.8k(it was originally meant to cover 65k but we changed our repayment part a long time ago to cover the shortfall) This obviously assumes that I pay the future payments which total 10,577. I should also be eligible for the SL promise of between 2.5-4.5k
We have recently inherited 45k and initially thought to cash in the endowment and clear the mortgage in full but when I checked how the policy was projecting it has made me doubt that I am doing the right thing.Does anyone have any opinions on what is the best course of action.
The other thing is the policy is unit linked with SL managed fund performing much better than the life with profits.Can I ask to transfer more of it into the better performing fund.Thanks in advance.
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Cheeky little bump!!0
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