Split Mortgage Deals - Any Advice

Debbie123

Hi Joe

The actual surrender value is £7,582. It has life cover of £17,250 if either of us die (providing all payments have been made which they have).

Why can't things be simple!!!

Is there any way I can check how the investments have faired over the last few years. I know they state that if the investment grows by 4%/5%/8% you get "x" amount back but it might help by looking at how the rates have faired in the past.

Thanks

JoeK_3

Investment returns have reduced as a result of the stock market crash of the year 2000 and after. Investment returns are improving as a result of the stock market results recently but you are unlikely to see the anticipated returns that were assumed when you took the policy out.

You have to make the best that you can to suit your circumstances.

Investigate the cost of a decreasing term policy for the same sum assured on death over the remaining period.

Investigate the fact that you may be able to sell the policy on the TEP market.

Once you have all the information available, then you can start to make an informed decision.

JoeK

Debbie123

Investigate the fact that you may be able to sell the policy on the TEP market.

What's the TEP market?

JoeK_3

Debbie123 wrote: »

Investigate the fact that you may be able to sell the policy on the TEP market.

What's the TEP market?

I apologise for using industry slang.

TEP stands for Traded Endowment Market and it is where people can both buy and sell their endowment policies online. Have a look by clicking on the link http://www.tepexchange.com

JoeK

Debbie123

I'd actually found it by putting TEP in google!!! Have sent for an online valuation with Neville James just to get an idea what's out there.

Still some thoughts to consider, another site suggests selling back to Friends Provident, making the policy paid up with expected reductions on maturity/death etc

JoeK_3

Neville James will not buy the policy off you, they will only agree to market it for you.

The problem with having too many peoples opinions is that it could confuse you and you end up not doing anything. I would like to draw your attention to the words in my signature regarding that.

Regards

JoeK

[Deleted User]

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Lipstick_2

Do you have any other life insurance policies?
Are you cautious or risk averse?

UK007BullDog

How old are you and your partner.

An alternative would be to make the mortgage term longer to 12 or even 15 years and have a plain repayment mortgage which will be finished at the end of the term.

When your endowment matures you can use that money to pay towards the mortgage and reduce the monthly payments even further. Or you can continue with the mortgage as it is and use the money (endowment, shares) for something else (furniture, holiday, car etc....).

Endowments and shares can go up as well as down. There is no guarantee that you will have enough money to pay off or towards the mortgage. Only a full repayment mortgage will guarantee it.

Debbie123

My partner is 46 and I'm 44. We'd rather pay the mortgage off sooner rather than later.

We are now looking towards a full repayment mortgage and I just need to look for the best deals. I suppose if I look at alternative terms ie 10, 12, 15 years it'll give us something to work on.

I also need to know that we can pay off lump sums as and when we need. Who's offering the best deals?

I also need to look at life insurance - I need to double check what we've got as we have our own individual policies and maybe have a joint policy instead.

Lots of reading & decision making to do.