Companies who buy endowments

Spooky

I have an endowment which is on track for a shortfall of £4125 (given 6%growth) which matures in 16years. I was going to cash it in and pay off my credit cards instead as I have switched my mortgage to full repayment. I understand some companies buy endowments from you for more than the surrender value, can anybody recommend any and am I right in cashing it in.

Thanks in advance

dunstonh

and am I right in cashing it in.

Unless we know about the endowment, we cannot tell. There are about 15 different types of endowment. You have different providers, charges, investment funds, target growth rates etc. Some are very good, some average, some bad.

A shortfall of £4125 isnt much and if its a good provider with a strong with profits fund or invested in unit linked funds, then that shortfall may not reflect the true potential of the investment. If its a bad one, the shortfall could be much bigger.

Tell us more about the endowment.

Spooky

Hello again.

It doesn't sound a lot but when its supposed to pay a mortgage of only £28025, it puts it into perspective. Im with Countrywide Assured. Im not sure what its invested in.

A 4% growth would give a shortfall of £9000, it would need an 8% growth to get a surplus of £2175