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Endowment early surrender
Nickynoo1
Posts: 392 Forumite
Hi,
I'm not sure if this goes here as there seems to be a lot of talk about mortgages and not a lot on endowments but here goes.
I have an endowment that i've been paying into for 16 1/2 years. Initially bought to pay off mortgage but I switched to repayment a number of years ago and kept this going as a savings plan. I called to get a surrender value and they gave me a little over £17k. This is about the same as paid in so whilst not great, could have been worse.
Ive got projected maturity values after paying in another £74 for another 8 1/2 years of @1.5% GROWTH £25,400, 4.5% £31,900, 7.5% £39,900.
It's currently growing at 1.75% and final terminal bonus is at £1,618 but is not guaranteed. Now I figured even if I took it all and stuck it in an isa i could get 2.5%.
I'm thinking to cash it in. I looked to sell but it is half 'with profits' and half fund managed so don't think i can sell. So if I sell i will pay off a loan and save around £800 in interest. Also have some other debts on 0% but will save unmeasurable amounts of stress to get rid of debts and be able to save a little It has about £35 of life cover included so will look to replace this. It doesn't effect tax credits and is tax free. Its a prudential endowment.
I think Ive covered all eventualities but wondered if you guys see anything I've overlooked to stop this being a good idea?
Thanks
Nickynoo1
I'm not sure if this goes here as there seems to be a lot of talk about mortgages and not a lot on endowments but here goes.
I have an endowment that i've been paying into for 16 1/2 years. Initially bought to pay off mortgage but I switched to repayment a number of years ago and kept this going as a savings plan. I called to get a surrender value and they gave me a little over £17k. This is about the same as paid in so whilst not great, could have been worse.
Ive got projected maturity values after paying in another £74 for another 8 1/2 years of @1.5% GROWTH £25,400, 4.5% £31,900, 7.5% £39,900.
It's currently growing at 1.75% and final terminal bonus is at £1,618 but is not guaranteed. Now I figured even if I took it all and stuck it in an isa i could get 2.5%.
I'm thinking to cash it in. I looked to sell but it is half 'with profits' and half fund managed so don't think i can sell. So if I sell i will pay off a loan and save around £800 in interest. Also have some other debts on 0% but will save unmeasurable amounts of stress to get rid of debts and be able to save a little It has about £35 of life cover included so will look to replace this. It doesn't effect tax credits and is tax free. Its a prudential endowment.
I think Ive covered all eventualities but wondered if you guys see anything I've overlooked to stop this being a good idea?
Thanks
Nickynoo1
16/06/16 £11446 30/12/16 £9661.49
01/08/17 £7643.69
01/08/17 £7643.69
0
Comments
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bump........16/06/16 £11446 30/12/16 £9661.49
01/08/17 £7643.690
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