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surrender endowment policy or take out loan?
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Narla
Posts: 188 Forumite
Any advise would be gratefully received!
I am looking to have a new kitchen fitted and need about £10,000.
I could take out a loan over 5 years OR I could surrender my endowment policy OR I could take out the additional sum on top of my mortgage BUT i'm confused as to what to do for the best.
A loan would cost me about £1,800 interest over 5 years which I would much rather avoid!
My endowment policy is for £18,000 and due to end in July 2011. The current surrender value is £10,560 and the minimum it will pay at maturity is £11,072. I pay just £23.68 per month for this.
Standard life is going to pass on my details to APMM to see what they would pay on the second hand market for the policy so I am awaiting thier reply.
I would hate to miss out on any profits from this policy though, if I get rid of it too early.
This policy is still linked to my mortgage so I do only pay the interest only element on this amount. I still have to change to a full repayment mortgage to make up the short fall. It's been too tempting until now to just pay the interest to help keep the mortgage payments down. I also have £40,000 on a repayment mortgage.
I would really appreciate any suggestions from anyone with advise what to do for the best.
Many thanks, Narla :rolleyes:
I am looking to have a new kitchen fitted and need about £10,000.
I could take out a loan over 5 years OR I could surrender my endowment policy OR I could take out the additional sum on top of my mortgage BUT i'm confused as to what to do for the best.
A loan would cost me about £1,800 interest over 5 years which I would much rather avoid!
My endowment policy is for £18,000 and due to end in July 2011. The current surrender value is £10,560 and the minimum it will pay at maturity is £11,072. I pay just £23.68 per month for this.
Standard life is going to pass on my details to APMM to see what they would pay on the second hand market for the policy so I am awaiting thier reply.
I would hate to miss out on any profits from this policy though, if I get rid of it too early.
This policy is still linked to my mortgage so I do only pay the interest only element on this amount. I still have to change to a full repayment mortgage to make up the short fall. It's been too tempting until now to just pay the interest to help keep the mortgage payments down. I also have £40,000 on a repayment mortgage.
I would really appreciate any suggestions from anyone with advise what to do for the best.
Many thanks, Narla :rolleyes:
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