News0 min ago
Endowments policy.
19 Answers
Got a letter yesterday regarding (his) endowment policy stating that it is forecasted to be 16k short.
The mortgage is for 47k.
What would be the best options? Should we cash it in now, remortgage and go re payment. Or go repayment and keep it the endowment until it matures?
It's 15 years old now so has another 10 years to run. We also got info saying that he might have been mis sold the policy.
The mortgage is for 47k.
What would be the best options? Should we cash it in now, remortgage and go re payment. Or go repayment and keep it the endowment until it matures?
It's 15 years old now so has another 10 years to run. We also got info saying that he might have been mis sold the policy.
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ummmm, I was in a similar situation a few years ago. I just thought if I had the suggested shortfall at the end of the mortgage (poss £23k) I'd be devastated. I cashed the endowment and re-mortgaged for my peace of mind.
my endowment was a "with profits" policy, so I was a bit stuffed re selling it on.
vibra's points are more important than my opinion, btw!
my endowment was a "with profits" policy, so I was a bit stuffed re selling it on.
vibra's points are more important than my opinion, btw!
never surrender an endowment without checking as they can be sold and usualy fetch much more than the surrender value
http://www.which.co.u...ment-policy/index.jsp
this site was found by searching on google and would seem to answer your questions regarding possible mis-sold endowment
i would advise the best course of action would be to seek the advice of an independant fincial advisor.
hope this helps
http://www.which.co.u...ment-policy/index.jsp
this site was found by searching on google and would seem to answer your questions regarding possible mis-sold endowment
i would advise the best course of action would be to seek the advice of an independant fincial advisor.
hope this helps
The policy and the mortgage are entirely separate so there is no reason to remortgage for this reason alone.
What many people do (and indeed what I did) was to up the mortgage repayments such that the capital outstanding reduces over the next 10 years to the figure that the endowment policy is projected to be valued at after another 10 years. That way it will then pay off the loan at the end of the mortgage period.
Whether the policy is worth cashing in depends on its cash-in value and we can't really provide you financial advice of that nature here - nor do we have enough information to do so.
Mis-selling is a separate issue that you can pursue anyway - though I had believed that most cases had been processed and certain deadlines for registering claims have long since passed.
What many people do (and indeed what I did) was to up the mortgage repayments such that the capital outstanding reduces over the next 10 years to the figure that the endowment policy is projected to be valued at after another 10 years. That way it will then pay off the loan at the end of the mortgage period.
Whether the policy is worth cashing in depends on its cash-in value and we can't really provide you financial advice of that nature here - nor do we have enough information to do so.
Mis-selling is a separate issue that you can pursue anyway - though I had believed that most cases had been processed and certain deadlines for registering claims have long since passed.
Besides all the jargon this is what the main letter says....
Start date - Jan 96
Maturity Date - Jan 21
Target amount - £47,200
And what your plan might provide at maturity....
Growing at 4.00% - Projected Final Amount - £30,900
Growing at 6.00% - £36,800
Growing at 8.00% - £43,900
He's been paying £78.41 monthly. I presume since he took it out. The policy is with Winterthur Life and his mortgage is with The Halifax.
Start date - Jan 96
Maturity Date - Jan 21
Target amount - £47,200
And what your plan might provide at maturity....
Growing at 4.00% - Projected Final Amount - £30,900
Growing at 6.00% - £36,800
Growing at 8.00% - £43,900
He's been paying £78.41 monthly. I presume since he took it out. The policy is with Winterthur Life and his mortgage is with The Halifax.
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