Scottish widoe endownment

italy21

We have a Scottish Widows, low-cost endownment with profits endowment due to edpire 13/1/2019. interest only mortgage expires 15/10/2018/ Today we received figures from SW detailed below

Surrender value £42669

illustrated maturity vale
0.5% 39400
6.5% 42900,

now im guessing there is no way we will get 6.5% (they dont do a middle projection), plus we will have to pay roughly another £900/1000 to get us to January with bank payments etc. Sadly none of our friends have completed their mortgages recently so looking for any advice, My husband feels surrending it now and clearing of the £8000 shortfall is the best way to go, but part of me is worried that we may be throwing away the bonuses esp with only 3 months to go. Would be willing to go to a indp finance advisor but guessing (again) this will be a couple of hundred pounds. Any info will be mush appreciated.

dunstonh

now im guessing there is no way we will get 6.5% (they dont do a middle projection)

Possibly you could as the projection rate is not net of charges but gross of charges. This is why the figures dont add up (and why the 0.5% is showing a loss). So, deduct the charges and the fund itself has been growing better than that for the last few years.

but part of me is worried that we may be throwing away the bonuses esp with only 3 months to go.

Final bonuses accrue as you go along. The main issue is if there is a surrender penalty or not. This can be worked out by comparing the current value plus final bonus accrued to date vs the surrender value.

dcfc67

Could you use a 0% credit card (s) for the 3 month period ?

italy21

Bank are willing to extend loan, so not a problem. Going to hold on till maturity date.