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  • FIRST POST
    • fosnightmare
    • By fosnightmare 13th Jan 19, 1:52 PM
    • 19Posts
    • 0Thanks
    fosnightmare
    Brexit + Endowment
    • #1
    • 13th Jan 19, 1:52 PM
    Brexit + Endowment 13th Jan 19 at 1:52 PM
    My policy was meant to pay out 50k but has been under performing throughout. So I've been paying off the mortgage amount borrowed, in dribs and drab. It matures in September of 2020, about 20 months away. Am i being too wobbly if thinking of cashing in soon? In September 2018 it was valued at 40k but 38k last week. Or is 20 months enough time for markets to settle? It's meant to be a policy associated with UK Equity. I still owe the bank 35k
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 19, 6:24 PM
    • 8,207 Posts
    • 18,552 Thanks
    enthusiasticsaver
    • #2
    • 13th Jan 19, 6:24 PM
    • #2
    • 13th Jan 19, 6:24 PM
    It may include a terminal bonus so I would be wary about cashing the policy in without checking to see if this is payable as you would lose out by cashing it in early. Considering the markets are a bit volatile at the moment I am not sure cashing it in right now is sensible. As for whether 20 months is long enough for the markets to settle, no one knows.

    Have you explored selling it on? There are companies which buy endowment policies and sometimes offer more than the insurance company. Is that 38k just a valuation or what the insurance company would give you if you cashed it in now? The figures are not always the same.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fosnightmare
    • By fosnightmare 13th Jan 19, 10:13 PM
    • 19 Posts
    • 0 Thanks
    fosnightmare
    • #3
    • 13th Jan 19, 10:13 PM
    • #3
    • 13th Jan 19, 10:13 PM
    Hi enthusiasticsaver, thanks for your advice. I'm off next Friday; i've lined the day up to go thru' old paperwork. I'll call them to find out if there's a terminal bonus + check if the 38k is just a valuation or a payable amount. Just annoyed at myself for going for an endowment mortgage (tried complaining to the FOS but they ruled in favour of the mortgage company). I've added up how much I've paid over the last 23 years - monthly mortgage payments + endowment policy payments of 70 per month.
    Last edited by fosnightmare; 13-01-2019 at 10:19 PM.
    • dunstonh
    • By dunstonh 13th Jan 19, 10:49 PM
    • 97,532 Posts
    • 65,629 Thanks
    dunstonh
    • #4
    • 13th Jan 19, 10:49 PM
    • #4
    • 13th Jan 19, 10:49 PM
    Just annoyed at myself for going for an endowment mortgage
    Dont be too harsh on yourself. It may not be that bad. Endowment mortgages were typically around 25pm cheaper than repayment mortgages. So, there was likely a monthly cost saving. No-one could have predicted the change in the economy. Whilst that change hit endowments hard, it did result in much lower interest rates and big rises in property values. So, you are much better off through those.
    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.
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