Endowment selling! Do I, or Don't I

Elsari

Can anybody help me please,

I have a Scottish Provident with profits policy. I'm thinking of cashing it in as I could do with a lump sum to help with my current financial state. (I'm just scraping by every month). I have had various offers in the past few days, and am now wondering if this is the correct thing to do.

My problem is as follows, I have credit card debts of £5,300. on a 3.9% for the life of transfer. Also a debt of £2,000. on a 5.9% for life of transfer. Some years ago I changed over to a repayment mortgage, so the endowment has been a sort of nest egg fund. The policy has not been performing at all well, though I am a little surprised at the interest I've had so far.

Do you think I should take the best offer and settle the debts, or keep it running for the remaining years, and maybe I'll be pleasantly surprised! If I was to take the best current offer, It would give me a surplus of approx £7,000. after paying the debts. I was thinking of investing this in some other sort of fund that I believe may pay out more in the same period, or maybe I should reduce my current mortgage or re-mortgage at a better rate?. Incidently I have separate life cover on the repayment mortage which more than covers for the worst. My current mortgage is at the standard variable rate with the A & L.

I hope I've given all the relevant information.

Min death benefit: £25,500.
Basic sum assured: £8,389.
Last bonus total: £6,478.
Maturity date: 2013
The fund returned 5.8% between Jan 1st 2006 and Dec 31st 2006.

The fund was invested as at Dec2006: -
Fixed interest (bonds) 50%
Equities (company shares) 41%
Property 0%
Cash and other 9%
Monthly premium £33.38

Scottish Prov Surrender value at 18 Oct 2007 £13,375.
Best offer so far after contacting APMM is £14,335.

I am looking forward to any replies of guidance, as like a lot of people on here I'm in a complete pickle.

Many thanks in advance

wymondham

I can't advise if it's good or bad, but it seems to be the case that if you have good offers for it then it might not be such a bad policy and worth investigating it, but if nobody seems interested and it seems to be performing badly then it might not be worth keeping. As I say this is just experience of my own endowment woes from last year (nobody wanted it and it was a dud so I cashed it in) and reading others .. I'm sure you'll get a definative response soon!!

You don't mention how much you pay for it on a monthly basis...

Elsari

Thanks for the reply Wymondham, I thought I may have left something out. Post has now been edited.

EdInvestor

Please post the interest rate on the mortgage and the endowment forecast maturity values.