Sell Phoenix(SA) Endowments ?

littleboo

Looking for some advice please. I have posted about these endowments some time ago and now have offers for buying the policies. Both are with Phoenix, ex -Sun Alliance policies.

Guaranteed sum assured £17,622
Declared bonuses £8,888
Bonus added last year £26.48
Current Surrender value £22,279
Monthly payment £67.86
maturity date 30/07/2013
maturity forecasts 3.75% £31,600 4.5% £33,300 £5.25% 35,000
Best offer to purchase £24,000


Guaranteed sum assured £8,446
Declared bonuses £2,496
Bonus added last year £10.94
Current Surrender value £8,099
Monthly payment £39.02
maturity date 09/12/2013
maturity forecasts 3.75% £12,300 4.5% £12,700 £5.25% £13,100
Best offer to purchase £8,540

interest rate payable on mortgage 4.29% until Aug 08 :-)

Are the purchase offers reasonable ? I’m guessing I should sell and use the capital to make overpayments on the mortgage ? I’m allowed up to £500 per month and 10% in January.

Many thanks

EdInvestor

These offers - are they from people who will buy them outright, or people who will act as middlemen to find you a buyer?

littleboo

These are firm offers to buy outright, no auctions or middle men

littleboo

anyone got some advice ?

EdInvestor

littleboo wrote: »

Current Surrender value £22,279
maturity forecasts 3.75% £31,600 4.5% £33,300 £5.25% 35,000
Best offer to purchase £24,000

If you surrendered this and put it on deposit at 5% net also paying in the premiums to maturity you should get a return of 35,556 which is higher than all their projections.You would get more if you sell.

Current Surrender value £8,099
maturity forecasts 3.75% £12,300 4.5% £12,700 £5.25% £13,100
Best offer to purchase £8,540

The applicable return for this one would be 14,122 again higher than their best forecast.

interest rate payable on mortgage 4.29% until Aug 08 :-) I’m guessing I should sell and use the capital to make overpayments on the mortgage ? I’m allowed up to £500 per month and 10% in January.

I've done the sums at 5% since your mortgage rate is so low, I'd have thought it better to save the money in a high interest account for now.It earns interest at a higher rate and then you can use it next year when you remortgage.

littleboo

Thanks for that info. Am I right in thinking that the terminal bonuses on these policies are unlikely to be worth waiting for ?

EdInvestor

littleboo wrote: »

Thanks for that info. Am I right in thinking that the terminal bonuses on these policies are unlikely to be worth waiting for ?

You might like to check the investment mix of the relevant WP funds (ask how much is in equities and property).Perhaps it has improved a bit, which is why you can now sell them. Unlikely to produce a return higher than 4% nevertheless, but a bit better than the zombie levels prevailing a year or two ago.