Endowment/mortgage question

Dave55

Hi

Just thought id run this by you all

Got a £27500 Mortgage\endowments ending in 3 years 6 months consisting of

1) 2 friends prov WP (circa 1985) £16500 and £2000 both under performing
2) Standard life policy making up the rest. under performing also ,all by a couple of grand even on predictions of 8%

Friend prov's end one month after mortgage but the standard life is 3 years after (not sure what happened their).
Question is what do i do about the staggered ending ?
Do i cash the lot and bang the lot into our ISA's for the remaing 3 years plus,
Or leave alone and overpay lender or do both
I know its not a fortune , any thoughts

Dave

EdInvestor

Post saome info about them

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
maturity date
Maturity forecasts
Interest rate payable on mortgage.

Dave55

Will gather all info asap

Thanks Dave

dunstonh

circa 1985 needs to be a bit more specific. Can you provide the actual date as yours may or may not qualify for LAPR tax relief.

Standard Life may have a mortgage promise value and you will need to find out the current terminal bonus accrued to date.

Dave55

original sums
1)Friends prov £16416
2)friends prov £2000
3)standard life homeplan £9186

Guaranteed sum assured
1) FP £6676
2) FP 1010
Declared bonuses
1) £3968.72
2) £322.96
Surrender value
1) £9434.00
2) £1082.00
Monthly premium
1)£34.71
2)£5.02
maturity date
1) 27/03/2011
2) 20/02/2012
Maturity forecasts
1)4% 12400--5.5% 13100--8% 14300
2)4% 1440--5.5% 1510--8% 1650
Interest rate payable on mortgage.
£26463 left 3 years 9 months 7.5% standard rate locked in till end of term

Standard Life Homeplan
Target £9186
monthly prem £21.64
value now £4093
forecast 4% 6710---5.5% £7500---8% £8370
maturity date 15/01/2015
not sure on surrender value..

About the Friends provident start dates
a bit shocked to find the £16416 one started on 27/03/1991
and the £2000 started on 20/02/1992

i thought i took them out when the mortgage started, 22 years is a long time:rolleyes:

Hope this makes sense to the experts. A Lot of figures but you did ask,
as i said before not a fortune just want the end to run smoothly with the best options

Dave

Dave55

Hi all

Posted info some of you requested i know it was easter but no reply as of yet, anybody any info on my above Posts just to put my mind at rest. :j

EdInvestor

Dave55 wrote: »

Maturity forecasts
1)4% 12400--5.5% 13100--8% 14300
2)4% 1440--5.5% 1510--8% 1650

With the 2 FP endowments, if you surrendered them and used the money to reduce the loan, also increasing the monthly mortgage payment by the amount of the endowment premium, then you would end up at maturity with 13,131 from the large one and 1,724 from the small one.

The FP With profits fund is generally thought likely to make a return of 4-4.5% so you would likely do better by junking the policies, and of course there is no risk (and no tax) with the mortgage overpayment strategy. Replace life cover before surrendering if you need it.

Re the Std Life policy call them up and ask the surrender value and any mortgage promise amount and then post the figures for a view.

hostertlady

my endownment will be finished in January (phoenix-formally r.life- formally royal and sun alliance!) It hasnt done all that well i dont think for a bonus. thank goodness i have whacked a load off my mortgage, it is nearly all paid up,

my understanding ( ?? ) is that an endownment is life cover to cover your morgage payments and at the end of the term what is remaining will get paid off by the endownment and you get the balance by cheque, is that right or am i talking a load of tosh??

i would like to post some figures but dont know where to start

EdInvestor

hostertlady wrote: »

my understanding ( ?? ) is that an endownment is life cover to cover your morgage payments and at the end of the term what is remaining will get paid off by the endownment and you get the balance by cheque, is that right or am i talking a load of tosh??

That was the original idea, but nothing was ever guaranteed and in most cases not only are people not getting any extra money at maturity, but the endowment is not even managing to pay off the mortgage.

hostertlady

EdInvestor wrote: »

That was the original idea, but nothing was ever guaranteed and in most cases not only are people not getting any extra money at maturity, but the endowment is not even managing to pay off the mortgage.

yes i saw that, i feel for people that are in that position,
when i post my figures i would like to pm you if thats ok..

bestmumof3

hostertlady wrote: »

yes i saw that, i feel for people that are in that position,
when i post my figures i would like to pm you if thats ok..

Hi there

Can you pm me too

We also have an endowment with Phoenix (former Royal & Sun Alliance); do not have any additional insurances etc.

I will soon be quitting my job to return to full-time education for teacher trainingfor a year, so would like to know how bad a situation we are really in:D