Please advise best option for my endowment

Physio

We have a NU endowment that was taken out to cover a £47,000 mortgage, we have since converted our mortgage to repayment and it is not needed to repay any mortgage.

Maturity date 2 April 2010 (just under two years)

Monthly payments £107.70 (23 months left to pay, equals £2477.10)

Estimated maturity

4% £36,400 (£10,600 shortfall)
5% £37,200 (£9,800 shortfall)
6% £38,100 (£8,900 shortfall)

Including final bonus up to Dec 2007

Mortgage endowment promise,providing the investment return on our free mortgage reserves is sufficient, £5,400 maximum. (Not guarenteed)

APMM believe they can sell the policy between £33,228.67 and £33,560.00 after fees.

Any advice would be appreciated, many thanks,

Physio

Dick_here

£33560 + £2477.10 still comes to less than £36400. Why on earth would you consider selling it ?

Physio

Thanks !!!!!!,

but does it mean that the extra £2400 will be added or can it be less than £2400 even though I still have £2400 to contribute, and would I be better off putting that money elsewhere, any advice will be appreciate,

regards,

Physio

Dick_here

We need dunston's input to this one, but in my very amateur view I cannot imagine a scenario whereby a mere 4% projection wouldn't at the very least be reached when you've only got two years to go.

Physio

Thanks !!!!!!,

Hope Dudston picks this up then!

dunstonh

I would keep. NU have the special bonus being paid for the next 2 years (and this years was paid after the date of the figures quoted here). Plus you have the estate to be distributed and you may get lucky and have it resolved by then.

NU has been exceeding 6% in general but with the above special bonuses and mortgage promise there is a good chance this will come in close on target.

What is the surrender value?
and can you get latest figures as NU paid a special bonus after the date you mentioned.

Physio

Thank you Dunstonh,

will call NU for the details, I really appreciate your time,

regards,


Physio

EdInvestor

Not all NU policies are getting the bonuses, you need to check.Post the surrender value so we can see if it's worth keeping.

dunstonh

Thats why I wanted up to date figures. We will be able to tell from the latest figures compared to the previous.

Gorgeous_George

!!!!!!_here wrote: »

£33560 + £2477.10 still comes to less than £36400. Why on earth would you consider selling it ?

!!!!!! is thick!

Take APMM's lower estimate of £33,228 and invest it 4% (after tax) will guarantee £35,940. Add on £2,477 payments with interest and you will need more than £38,500 guaranteed. That's more than the higher estimate from the provider.

GG

dunstonh

Of course, the higher estimate is just an example rate and may not reflect the real performance