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Hi
We have an endowment (current value about 58k) that matures in 2 years. It was to repay a mortgage. It has a shortfall but we have adjusted our mortgage to take account of this. We have part of the mortgage on repayment only that the endowment will cover, but this has 4 year left to run. The question is do we cash it in on maturity in 2 years, stop paying into it in 2 years or continue to pay into it for another 2+2 years? Generally it had been ticking along not earning much but the last few years has improved and is increasing in value by 4-6k per annum.
Thanks
Originally posted by jcknowles
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You don't get to choose. In 2 years time it has matured, so it is finished. They contact you in the month or so before it matures and sort out/double check which bank account it will be paid into a few days after it matures.
You can then decide what you will do with your 58k until it is required to pay the remaining amount of your mortgage. I don't know if all of it is needed or not. If there is surplus after you have paid the mortgage, well, you might know already what you will do with the money or you might want to speak to an IFA for advice, or head over to Savings and Investments forum and search on 'windfall' or similar. You'll soon get an idea of the (fairly limited) ways you might have available to try to earn a bit of interest on it.