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    • italy21
    • By italy21 13th Sep 18, 1:24 PM
    • 2Posts
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    italy21
    Scottish widoe endownment
    • #1
    • 13th Sep 18, 1:24 PM
    Scottish widoe endownment 13th Sep 18 at 1:24 PM
    We have a Scottish Widows, low-cost endownment with profits endowment due to edpire 13/1/2019. interest only mortgage expires 15/10/2018/ Today we received figures from SW detailed below

    Surrender value 42669

    illustrated maturity vale
    0.5% 39400
    6.5% 42900,

    now im guessing there is no way we will get 6.5% (they dont do a middle projection), plus we will have to pay roughly another 900/1000 to get us to January with bank payments etc. Sadly none of our friends have completed their mortgages recently so looking for any advice, My husband feels surrending it now and clearing of the 8000 shortfall is the best way to go, but part of me is worried that we may be throwing away the bonuses esp with only 3 months to go. Would be willing to go to a indp finance advisor but guessing (again) this will be a couple of hundred pounds. Any info will be mush appreciated.
Page 1
    • dunstonh
    • By dunstonh 13th Sep 18, 1:38 PM
    • 95,739 Posts
    • 63,445 Thanks
    dunstonh
    • #2
    • 13th Sep 18, 1:38 PM
    • #2
    • 13th Sep 18, 1:38 PM
    now im guessing there is no way we will get 6.5% (they dont do a middle projection)
    Possibly you could as the projection rate is not net of charges but gross of charges. This is why the figures dont add up (and why the 0.5% is showing a loss). So, deduct the charges and the fund itself has been growing better than that for the last few years.

    but part of me is worried that we may be throwing away the bonuses esp with only 3 months to go.
    Final bonuses accrue as you go along. The main issue is if there is a surrender penalty or not. This can be worked out by comparing the current value plus final bonus accrued to date vs the surrender value.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • dcfc67
    • By dcfc67 13th Sep 18, 6:35 PM
    • 53 Posts
    • 36 Thanks
    dcfc67
    • #3
    • 13th Sep 18, 6:35 PM
    • #3
    • 13th Sep 18, 6:35 PM
    Could you use a 0% credit card (s) for the 3 month period ?
    • italy21
    • By italy21 15th Sep 18, 12:29 AM
    • 2 Posts
    • 0 Thanks
    italy21
    • #4
    • 15th Sep 18, 12:29 AM
    • #4
    • 15th Sep 18, 12:29 AM
    Bank are willing to extend loan, so not a problem. Going to hold on till maturity date.
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