axa sun life mortgage endowment

fultime

Mortgage rate is 5.5%. Should we not pay the extra monthly amount do you think or not?

EdInvestor

fultime wrote: »

Maturity date they are stating is 12.03.2010 but original paperwork states maturity date is 12.02.2010 so they have added a month. The last maturity forecast at 6% was £12000.

If you surrender the policy and use the lump sum to pay of f the mortgage, also paying in the mortage premiums to maturity, then your return would be 14174 well ahead of the forecast..

fultime

Ok thanks I understand that, but what if we up the monthly premiums as they have suggested for the last two years left because they are guaranteeing the £20,000 if we do that. I'm sorry to be a pain but I want to get this right, it would mean over the two years we would be paying into it another £2400 approx.

EdInvestor

What exactly are they guaranteeing?

fultime

Hi again, our original mortgage was for £20,000, its not now though its £40000 but we changed to a repayment mortgage and kept the endowment for £20,000 going, but of course it won't pay out £20,000, they are saying if we increase the monthly payments from £49 to £149 for the last two years they will change it to a with profits policy and guarantee us £20,000 plus maybe a bonus at the end of the two years, my husband seems to think this is a good deal but I am a bit wary about putting more money into this, although it does have £20,000 death benefit for both of us until it finishes of course. They are offering us £11,000 for it now, so in effect if we pay the extra £2400 we will get at least £20,000 in two years. I hope this explains it better, I do appreciate all your time and effort to get this right for me, thanks.

EdInvestor

OK, if you surrendered it now and paid the lump sum into your mortgage, also upping the premiums to 148 pounds till maturity, you would end up with 16,636.

Whch is not as good as 20,000, if I'm understanding you correctly.

Is this perhaps their way of giving you some misselling compensation?

fultime

What they are saying is they should have told us to increase the payments three years ago but they didn't so they are waiving the three years payments that we should have paid, which is three grand plus. Do you think we should carry on with it and pay the extra for the next two years then? I must be getting right on your nerves sorry!