peck Posted October 30, 2008 Report Share Posted October 30, 2008 We have an endowment mortgage that is due out in 2011. There is more than enough money in it now to pay off the mortgage and have a small sum left over. My question is will the endowment keep growing or will it stay at more or less what it is at the present, with this present financial situation would it be as well to cash it in now or wait till 2011.? Quote Link to comment Share on other sites More sharing options...
palombier Posted October 31, 2008 Report Share Posted October 31, 2008 Peck Even without a few questions asked,almost certainly Don't sell. Remember people buy second hand endowments through brokers so there's profit to be made out of people who sell early. P Quote Link to comment Share on other sites More sharing options...
Catamong Posted October 31, 2008 Report Share Posted October 31, 2008 Most Endowment policies also give a terminal bonus, payable upon maturity, which you would obviously not get if you surrender it early. My advice is also to hang on to it. Cat. Quote Link to comment Share on other sites More sharing options...
Dr W Posted October 31, 2008 Report Share Posted October 31, 2008 I'm no expert but if the Endownment investment is in stocks and shares surely now is not the time to sell, I reckon we're in for a bad year of two but then things should pick back up and your investment would grow again? Only my poor ignorant view I don't really know how these investments work Quote Link to comment Share on other sites More sharing options...
al4x Posted October 31, 2008 Report Share Posted October 31, 2008 Personally its a miracle that someone has an endowment that covers their mortgage. Personally think I'd get shot of it on the thinking that in the current climate a bird in the hand and all that Quote Link to comment Share on other sites More sharing options...
hawkeye Posted October 31, 2008 Report Share Posted October 31, 2008 Most Endowment policies also give a terminal bonus, payable upon maturity, which you would obviously not get if you surrender it early. My advice is also to hang on to it. Cat. :look: Spent 25 yrs doing endowments and if you cash it in the only winner is the insurance company.... Quote Link to comment Share on other sites More sharing options...
Maiden22 Posted October 31, 2008 Report Share Posted October 31, 2008 (edited) . Edited December 15, 2008 by Maiden22 Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted November 4, 2008 Report Share Posted November 4, 2008 As Ive just been through the mill with this and two policies of combined surrender value of 38K My advice would be to take advice from an independant and either sell or encash and reinvest. My Policies were supposed to ensure my Mortagage on maturity in 2023 of 100K but there is absolutely no way they are going to do that as they have been performing poorly years before the current crunch. Ive invested 25 K in emerging markets and Ive bought 13k worth of Gold....Ive already made a bigger return on the Gold than the two policy bonuses of the last 5 years. ! I dont know how the mortagage will be paid on maturity, but im not going to worry about it at the moment as I have at least 175% equity in the property. Speak to an Independant Financial Advisor but not the one who sold you the policies initially. Good luck. FM Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted November 4, 2008 Report Share Posted November 4, 2008 Or your bank. Quote Link to comment Share on other sites More sharing options...
Maiden22 Posted November 4, 2008 Report Share Posted November 4, 2008 (edited) . Edited December 15, 2008 by Maiden22 Quote Link to comment Share on other sites More sharing options...
henry d Posted November 4, 2008 Report Share Posted November 4, 2008 I have sold, rather than surrendered, mine just last year and for a different set of circumstances. My "With profits (HA!) " policy wouldn`t come close to covering the mortgage, however when it started to appear, several years ago, that there would be a shortfall we changed to a repayment mortgage and now have only just short of 3 yrs to go with it. The lump sum from the endowment has paid for a new kitchen and will also finance making a box room into a bedroom and should increase the house value by £15K. You seem to have done alright so far and if I were in your shoes I would do a few sums and then go to an IFA. Quote Link to comment Share on other sites More sharing options...
Maiden22 Posted November 4, 2008 Report Share Posted November 4, 2008 (edited) . Edited December 15, 2008 by Maiden22 Quote Link to comment Share on other sites More sharing options...
henry d Posted November 4, 2008 Report Share Posted November 4, 2008 That`s the problem, we were looking at it only paying 1/2 to 2/3 of the mortgage, it will be better off improving and adding value to the house. Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted November 4, 2008 Report Share Posted November 4, 2008 Mike, in what way have you invested in gold? Robert My broker, who is also my brother purchased 32 1 oz Krugerands on my behalf at 365 each in 2007 now they are about 430 Thats 13.5 % yield in about 12 months less storage fees. Its a risk but no less of a risk than HBOS ! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.