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Winterthur (Colonial Mutual) Endowment - cash in, sell or keep? Any help appreciated.
Two_Ton_Tess
Posts: 5 Forumite
I am very near the end of my fixed rate mortgage (4.99)and as part of my rethink of my finances, I am looking at my options for the following endowment policy:
Winterthur(originally Colonial Mutual) unit-linked with profit policy.
Maturity date: July 2014
Monthly payment: £50.83
Paid to date: £8538.44
If continued to pay to maturity cost would be: £12809.16
Winterthur have offered me £8235.45 for policy
Guaranteed pay out: £11727
This policy does include life assurance.
If I continue, Winterthur are projecting a 5% a year increase leading to £16,000 at maturity. Terminal bonus is currently 13% which I'm thinking must be included in the projection. (Not mentioned in their letter).
As this is unit-linked I understand that it may be difficult if not impossible to sell.
My new mortgage is likely to be a 6.2 tracker with no penalties for additional payments or early repayment. I currently have £55500 outstanding, £38,500 endowment and £17000 repayment. So, I'm thinking, take out new mortgage as £26000 endowment (have other endowments with Scottish Mutual that are heading for target, thankfully)and £29500 repayment, cash the Winterthur policy, pay £8250ish to mortgage, reducing amount outstanding to £47250. Is this sensible?
Winterthur(originally Colonial Mutual) unit-linked with profit policy.
Maturity date: July 2014
Monthly payment: £50.83
Paid to date: £8538.44
If continued to pay to maturity cost would be: £12809.16
Winterthur have offered me £8235.45 for policy
Guaranteed pay out: £11727
This policy does include life assurance.
If I continue, Winterthur are projecting a 5% a year increase leading to £16,000 at maturity. Terminal bonus is currently 13% which I'm thinking must be included in the projection. (Not mentioned in their letter).
As this is unit-linked I understand that it may be difficult if not impossible to sell.
My new mortgage is likely to be a 6.2 tracker with no penalties for additional payments or early repayment. I currently have £55500 outstanding, £38,500 endowment and £17000 repayment. So, I'm thinking, take out new mortgage as £26000 endowment (have other endowments with Scottish Mutual that are heading for target, thankfully)and £29500 repayment, cash the Winterthur policy, pay £8250ish to mortgage, reducing amount outstanding to £47250. Is this sensible?
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