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Endowment ,some advise appreciated
ruralrob228
Posts: 15 Forumite
I Will try to explain our situation as clear as possible so hear goes.
We have an Endowment policy which matures in 1st may 2020, it was taken out for £42.275 and we know there will be a considerable shortfall. We were in a position a few years ago to pay £5000 off it and our mortgage company advised 2 years ago that we make additional payments to clear more of the shortfall (£9000).
So we are now in the position where we currently owe today £25300 on our mortgage and having phoned the endowment company today they have said its surrender value today is worth £28450 minus £157 in fees. The bonus I would loose on final payout is 2.5% of the fund which is around £700.I have worked out we have 22 months payments left of £146 (85 mortgage and 61 endowment) which equals £3212 .So If I have worked it out correctly our policy will have to be worth at least £31500 to cover the extra payments we would be making between now and May 2020 .
I would be grateful if anyone can tell me if they think it is worth surrendering now and just clearing the mortgage today or worth hanging on in case the policy is likely to pay out a bit more than £31500.
I hope that all makes sensei would appreciate any advice given. Many thanks Rob
We have an Endowment policy which matures in 1st may 2020, it was taken out for £42.275 and we know there will be a considerable shortfall. We were in a position a few years ago to pay £5000 off it and our mortgage company advised 2 years ago that we make additional payments to clear more of the shortfall (£9000).
So we are now in the position where we currently owe today £25300 on our mortgage and having phoned the endowment company today they have said its surrender value today is worth £28450 minus £157 in fees. The bonus I would loose on final payout is 2.5% of the fund which is around £700.I have worked out we have 22 months payments left of £146 (85 mortgage and 61 endowment) which equals £3212 .So If I have worked it out correctly our policy will have to be worth at least £31500 to cover the extra payments we would be making between now and May 2020 .
I would be grateful if anyone can tell me if they think it is worth surrendering now and just clearing the mortgage today or worth hanging on in case the policy is likely to pay out a bit more than £31500.
I hope that all makes sensei would appreciate any advice given. Many thanks Rob
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