Mortgage / Endowment Advice

Gemmzie

I'm fairly confident with finance but don't know a lot about mortgages, so with all the drama going on lately, just wanted to check our position wasn't too wobbly mortgage-wise and secured loan-wise.


House is worth approx £250k

Repayment mortgage was originally £85.1k (currently £75.2k) - current rate is 6.25%, promises not to be more than 1% above the base rate - allows overpayments - think it ends in 2020. Paying £620

Interest only part was originally £33.9k - current rate is 6.25% - we have an endowment for £50k to pay this (which is currently showing a lowest estimate of £30k) - ends 2019 when endowment matures. Paying £177

Secured loan was 30k (currently £21k) - current rate 13.25% - not sure when it ends, considering the payment last month was 58p, I'd say a long time. Paying £312


How does this look?

I'm wondering at the moment whether to surrender the endowment to use for the secured loan but not sure what numbers to crunch to find out if this is worthwhile. Can anyone shed any light?

EdInvestor

Hi Gemmzie

Post some info about the endowmwnt;

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Maturity date
Maturity forecasts
Monthly premium

It's very likely your situation can be improved .

sarkin

those rates are not competative, I think you will find lower for the mortgage. As for the secured loan if it is over 25 years, consolidate on to mortgage and half the interest rate.

I am not authorised for endowments and only know the basics

Gemmzie

I guess I should mention there's no way we'd get another mortgage, they had trouble getting this one, hence the separate secured loan. Since then my dad has been defaulted twice.

I'll get the endowment information later, thanks

Gemmzie

EdInvestor wrote: »

Hi Gemmzie

Post some info about the endowment;

Provider Norwich Union for £50k
Guaranteed sum assured £17,600 + £4,929.55 (regular bonus to date)
Declared bonuses 3% on with-profits sum insured and 5% on existing bonus
Surrender value £16,765
Maturity date August 2017 (was taken out August 1992)
Maturity forecasts 4% = £30,700; 5% = £33,200 ; 6% = £35,900
Monthly premium £80.40 (from year 5 onwards, was less before)

It's very likely your situation can be improved .

Added all I could find.

dunstonh

Prudential is a good sign. As of date, they have not failed to hit target and their surpluses have been increasing each year since 2004. Even Scot Am (who Pru bought) has a high 90s% record of hitting target.

Lets hope the rest of your data is as positive.

Gemmzie

Isn't Prudential, it's Norwich Union - which is a bit odd to me as their FA was Prudential

EdInvestor

You'll need to call them up to ask for the surrender value and maturity forecasts, Also ask if there is any extra amount under the "endowment promise".

Capricorn_One

And of course never surrender when you can sell the endowment for a higher price. Am selling mine at the moment for £1500 more than the SV.

Gemmzie

Got the surrender value, maturity forecast is in the post

Gemmzie

I've got all the information now, added to post #5