Virgin one/HSBC/Endowment

John_G66

I currently have a Virgin One total balance = 98,700 breakdown of that is:

52,000 interest only - 9 years remaining

46,700 repayment - 22 years remaining

endowment will have a shortfall of 19,000 - 29,000 (9 years) and the endowment payment = 71.20 per month.
So in total my mortgage payments are 588.64 per month, this figure includes joint life cover for the 46,700.

HSBC have had a look at my finances, they have offered me the following :

A. Convert all the borrowing to a repayment and keep the endowment as a savings plan = 717.54 per month (monthly payment in 10 years 660.08)

B. Convert all the borrowing to a repayment and surrender the endowment using the lump sum to reduce the motgage. Current value of fund = 9,000.
= 588.57 per month.

C. Convert to part borrowing and keep part interest:
Capital 65,330 over 22 years = 408.32 a month
Interest 33,370 over 9 years = 138.91 a month
life cover 33,370 over 22 years = 23.75 a month
endowment 71.20
= 642.18 (Payments in 10 years 440.05)

Although this figure relys on the endowment 'coughing up' 33,370 in 9 years.



Anyone able to steer me toward the best option...........

John_G66

Alternatively I could keep my fingers crossed and rely on what those B*STARDS at L & G promised me all those years ago !!

EdInvestor

Hi John

Post a few figs on the endowment so we can see if it's worth keeping.Assuming it's With profits:

Guaranteed sum assured
Attaching bonuses
Surrender value
Monthly premium
Maturity date

John_G66

Hi Edd,

Sum assured = 55,570

Bonuses (can't seem to find any info on this) ??

Surr Value = 9132.56 as at 230904

monthly premium = 71.20

maturity date = 230816

I'll see if I can find any bonus info !!

EdInvestor

John

Possibly it's a "unitised WP" endowment rather than a conventional one, and thus will have no attaching bonuses.

OK let's say you surrendered it and put the money in the bank @4% until maturity, also paying in the premiums:you should end up with c 26k. Deduct from that the cost of replacement life assurance for the period, 3,168, gives a total of 22,832.To meet this target the endowment would need to grow at 2.5% annually, not very demanding and it might do considerably better.

No real case for surrendering this one at the moment, as far as I can see.