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  • FIRST POST
    • jcknowles
    • By jcknowles 10th May 18, 3:29 PM
    • 1Posts
    • 1Thanks
    jcknowles
    What to do when an endowment matures
    • #1
    • 10th May 18, 3:29 PM
    What to do when an endowment matures 10th May 18 at 3:29 PM
    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
Page 1
    • fewcloudy
    • By fewcloudy 10th May 18, 4:15 PM
    • 246 Posts
    • 132 Thanks
    fewcloudy
    • #2
    • 10th May 18, 4:15 PM
    • #2
    • 10th May 18, 4:15 PM
    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

    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.
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
    • dcfc67
    • By dcfc67 10th May 18, 5:02 PM
    • 53 Posts
    • 36 Thanks
    dcfc67
    • #3
    • 10th May 18, 5:02 PM
    • #3
    • 10th May 18, 5:02 PM
    When it matures they pay the money into your bank account, usually the one which the direct debits were taken from.
    Have you looked to see how much they have been paying as terminal bonuses over last few years.
    i know this isn't a guarantee but it may boost your payout.
    Once mine ends i have a year left on mortgage so will overpay the amount which i put into the endowment to reduce the amount on the repayment part of my mortgage
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