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mortgage guidance for my parents!
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Sounds like you have a unit linked plan. What funds are you invested in?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Maturity forecasts
4% per year £8,740
6% “ £10,300
8% “ £ 12,200
Interest rate payable on mortgage ( now) and SVR
8.6.0400%,we are on a dis’ of 1.30%
SVRi believe is 7.34%
If you cashed in the endowment and used the lump sum to reduce the mortgage, also increasing the mortgage payment per month by the amount of the endowemrnt premium, then at maturity your total retuen would be 11,816 guaranteed, which is close to their top projection but with no risk.
You do get life cover included in the endowment,so replace that before any surrender.To remove the shortfall, increase the monthly payment a bit more on top of the extra from the endowment, so as to overpay the loan.Trying to keep it simple...
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