Really stuck - cash in or keep with it

Thrugelmir

Another vote for option A. You cannot buy peace of mind.

Once debt free then start speculating via a pension, ISA etc. There's an old saying only gamble with money that you can afford to lose.

bigscooby

Thats very true stock markets are good at the minute but that could quickly change with Brexit, Russia inflation etc

getmore4less

Price up your insurances first so you know what the numbers are.

1.7% is a tiny premium to pay on the debt if the equivalent cover is a lot more expensive.

missblogg

I am not an expert but just a little input from me, i have read on here about endowment policies and i have decided to cash mine in and it only has 18 months left...mine is with friends life, but to be honest it is not going to pay me any final bonus at the end, it is only guaranteed to pay me about 15k and its surrender value right now is 17k. Nothing to keep it for really!
I would reconsider cashing yours in as you have a standard life one and they seem to have something called a mortgage promise at the end ,which my friends life hasn't got , i cant find the one i seen on here the other day..but the person got £6k added for mortgage promise, i would advise you to check both your policies first to see what they Have to offer.

It does sound nice for you though to cash in now and save yourself 10k in endowment payments and also your mortgage interest payments for 72 months whatever that adds up too!

But you could be missing out on 10k if both your policies do have this morgage promise lets say if one pays you 6k and the other one 4k if you know what i mean;);)

This is the post i seen/ the title was
Anyone with a 25 year endowment which matured recently ?

25 yr Std Life matured May 2016 (taken out in 1991)
Monthly premium £71
Original Home Loan £55,500
Sum Assured £18,700
Maturity value £34,200
MEP £6,800
Total payout £41,000

Not too unhappy (thanks to the MEP), but still mightly pleased I paid off my home loan by other means.

xyz123

With option A How much will you be able to save each month after mortgage is paid off and how secure is your job. If you feel you are disciplined enough and able to start saving after mortgage I would be inclined to go with option A with separate life insurance etc. Alternatively you can always cash in endowments, use that to pay as much mortgage as you can and switch remaining to repayment (may not be 1.7% as many firms have minimum mortgage amount they would lend) . That way you pay interest but get to keep your savings.

GDB2222

If you are thinking of cashing in your endowment policies, it's worth getting some quotes from people who buy the policies secondhand and may pay more than the surrender value.

johnspacer

Another option is to sell.
Had a similar dilemma myself - my policies are currently in the process of being sold. I have 2 prudential policies.
My policies expire August 18- they were originally taken out to cover £48150, I have been given a surrender value of £49200 and a quote of £50050 to sell.
I had a fixed rate on my mortgage that ended at the beginning of the month, to keep the policy and mortgage going will cost me £5400 so decision was quite easy in the end.
I had started thinking about this in January - followed some advice on here about waiting for bonuses which got me an extra £1000 - so thank you for that .
Can't give feedback on selling process because I have only started but it seems simple enough. There seems to be only 2 companies buying Surrenda-Link and 1st Policy - its easy to get a quote online in a couple of days.

bigscooby

Thanks for all the advice guys much appreciated. I looked into the Standard Life MEP Mortgage Endowment Promise and its in writing on my most recent statement that it is worth a value between £100 and £200 so not worth keeping. Also if you keep your endowment to the maturity date you have no control on what the stock market is like at that time. At least cashing in now its high. I did try look at trying to sell my endowments to a third party but nobody wanted them as they are with profits. Last year after being in the same job for 25 years i was made redundant unexpectedly and this has played on my mind that if this happened again i would like to be debt free. Thankfully i got another job but it did take 3 months. With all this in mind i cashed in my endowmeints and am awaiting the cash. The 14 grand that i need to top up the endowments came from my redundancy. Its probably the wrong thing to do but only time will tell.

missblogg

Good Luck Big:money:scooby ..there is nothing wrong about being Mortgage free and £300 a month better off