Help please - endowment - to cash in or keep?

Red_Setter_2

You don't say in our message but have you tried claiming that you were mis-sold your endowment policies?

I did this with both my endowments, and in both cases I was offered the option of surendering the policy and accepting compensation. But after telling the companies I would like to keep the policies and receive the compensation they agreed, the compensation went to pay off a chunk of the capital and I still have the endowments.

My mortgage is now part and part for the rest of the term so the endowment policies should cover what is left on interest only and leave a nice little nest egg.

Regards,

Red Setter.

dunstonh

You don't say in our message but have you tried claiming that you were mis-sold your endowment policies?

Have they said they have been mis-sold? It isnt a free pot of money you can tell lies about to try and get money.

I did this with both my endowments, and in both cases I was offered the option of surendering the policy and accepting compensation. But after telling the companies I would like to keep the policies and receive the compensation they agreed, the compensation went to pay off a chunk of the capital and I still have the endowments.

These are Pru policies which appear to be on track and heading for a surplus. What redress do you think is going to be payable?

Geenie

I can't say we were mis sold our endowment when we took it out in 1983 as they were considered a good way of paying off the balance at the time, and we were advised by the banks in good faith I believe. As for all the adverts that suddenly appeared a few years back from companies wanting to buy them off people.......I can't believe they were doing this out of the goodness of their hearts and didn't see value in them still long term.

gfplux makes very good points in their post, and certainly the amount we were putting away each month at the same time into our Nationwide savings account was always drawn on for extras like holidays etc, despite us saying we wouldn't do this, so have little to see for that method, whereas the endowment was out of sight and mind so has never been touched.

And finally, when we were taking that endowment out in our youth with 25 long years to wait until the money came through, it seemed so far away we could never imagine the time coming and having that cash......but believe me those years soon pass :eek: and patience pays off.

kosma1

EdInvestor wrote: »

Before finally deciding it may be worth looking at some actual figiures

What interest rate are you paying on the mortgage?

i am currently paying 5.69% on a repayment mortgage, fixed for a further 4 years, at which point i will be on standard variable rate (or looking to re mortgage), i will be in a position in july to start paying a little extra each month off my mortgage, was going to just start with £15 per month, with some possible lump sum overpayments towards end of year when a policy i have matures.

so, i am thinking, if i am going to start making some repayments, and pru have a good success rate, perhaps i shall still keep the endowment, but, still looking for any advice if you (or anyone) thinks otherwise

kosma1

oh and i also should have added, that as well as making some ongoing monthly overpayments starting at £15 per month (i plan to increase this when i get pay rises after my credit cards are paid off) my endowment is due to mature 4 years before my repayment is finished, so at that point i know i could pay it off a little earlier