Endowment Shortfall: help needed

snapyou

I have an endowment mortgage with the Halifax for £26,000,started in November 1986 and due for maturity in November 2011.

The endowment is with Royal Sun Alliance.

When I called today I was told that today's surrender value is £12,690

Projected Final Amount @ 3.75%....................£16,000
" " " @ 5.25 %...................£ 17,100


However,on my "red alert" letters from 2005,the following were the figures:


Projected Final Amount @ 3.75%..................£16,600
" " " @ 5.25%.................£18,100

Therefore,it seems that the value is actually going down! Why could this happen ?

In addition,What is my annual bonus(i really am confused !)..my last letter said I had a total bonus of £5386.77
Is this amount added to my endowment when it matures?

What advice could anyone give to me as to how to proceed?

I have already received compensation for endowment mis- selling so that is not an option.

Excuse me if I'm being stupid but I am really clueless when it comes to all this kind of stuff.

Thanks in advance

dunstonh

Therefore,it seems that the value is actually going down! Why could this happen ?

Its not going down. Its because its not going up by the rates in those projections. For the figure to remain the same, it has to achieve those rates. It isnt doing so and is unlikely to do so.

Ideally, you should have got shot of it when your redress was paid. Keeping this one going was almost certainly a bad move. It's not too late though.

snapyou

dunstonh wrote: »

Ideally, you should have got shot of it when your redress was paid. Keeping this one going was almost certainly a bad move. It's not too late though.

Thanks for such a prompt reply.
Are you suggesting that selling it would be my best option? Can i do this even though i only have less than 4 years to pay?
Is it likely that the value will keep going down? Would i be better surrendering it and placing the money in some kind of interest account?

Thanks again.

weaver

I had the same mortgage with the Halifax - cashed it in 2 years ago - paid the cashed in amount off my mortgage and with the endowment monthly payments I saved I will have paid off my mortgage in full by the due date.

I did however find no one would buy this policy and had to take what Royal were offering.

Hope this helps

EdInvestor

snapyou wrote: »

Are you suggesting that selling it would be my best option?

Noone will buy this policy , you will have to surrender it.

What interest rate are you paying on your mortgage?

snapyou

Thanks for all your help.
I think i'm on the standard variable rate,perhaps minus .5%

snapyou

weaver wrote: »

I had the same mortgage with the Halifax - cashed it in 2 years ago - paid the cashed in amount off my mortgage and with the endowment monthly payments I saved I will have paid off my mortgage in full by the due date.

I did however find no one would buy this policy and had to take what Royal were offering.

Hope this helps

Thanks,can I ask yo how long you had remaining on your mortgage.I've only got 4 years to go