Should I cash in my endowment?

dunstonh

Forever_Red wrote: »

Was there a "mortgage promise"? This could make up a bit of the shortfall. Does anyone know if the "mortgage promise" was guaranteed?

Alan

The mortgage promise was broken by Standard Life. It was effectively an unlimited open cheque book when introduced which was daft. A few years later they put a cap on it. The amounts of the mortgage promise that now apply are fully funded and are not reliant on any event. So, the figures quoted as part of the mortgage promise range should be fine.

BellaBargains

I'd forgotten about the mortgage promise - on my statement from June last year it stated that the MEP was between £2,238 and £3,658 (at that time the projections were £13,100, £15,400 and £18,000 (so it's not been a great year I guess :rolleyes: ). I'm not sure whether MEP is included in the projections - I think not (hope not or I'm in really bad shape!).

Also - situation has changed in that DH's current employer have offered him a new job with a significant pay rise so we'd now probably only be looking to cash the endowment in if it was not worth keeping (ie too much risk of it costing us money in the long run when we could use it to reduce the mortgage right now)

Any thoughts?

EdInvestor

On the basis only half of it is WP and that has a reasonable chunk of "promise' money attached, I would keep it for now, so as to allow the unit- linked part to recover from current market falls. Review it when you refinance the mortgage next year, particularly if you are forced into a highish rate: anything up around 6.5% will likely mean you will benefit from getting rid of the endowment.