sammyh

iTrader: (1)

I am changing from endowment to repayment so I would like to cash in the endowment or would I be better off selling it? If so to whom?

Cheers
Sam

stevem2k

If at all possible, run it through to completion - that's what I am doing with our original endowment - treat it as an investment instead. Most of the value is there as a terminal bonus, so it's worth hanging on. Don't forget it is also a life insurance policy, so you only need the difference as insurance on the new mortgage.

If you have to sell it MoneyExtra may have some more information.

Get a price for cash-in from the endowment company to see which will give you a better return.

( I'm not qualified to give investment advice, blah blah blah )

Cheers,
Steve

camk

Terminal bonuses are crap at the moment. Current value,length of time to maturity and how long you've had it and what you've paid in are very important. Most important of all is do you really need the cash as right now, because now is not the best time as firms as applying larger penaties to early surrender and the market is way down. The one positive is that current prices make investing in Shares based Endowments cheap, not to say that later they won't be cheaper . These are supposed to be long term investments and down markets are a part of long term investments, its just been down longer than most folks thought possible.
The other alternative is freeze the policy and leave it but don't pay any more into it. However from my experience in having 2 policies maturing in the last 2 years, do not put too much hope into Terminal Bonuses, certainly not as much as the salesman originally did.

Cheers
Cammy

Timbo33

Terminal Bonuses are lower at the monment due to current stock market pressures but they may improve over the period you have to run to maturity.

If you really can't afford to keep it going or desperately need the cash then sell it rather than surrender it - go to a professional broker/Independent Financial Adviser (says the tied agent!!!)rather than use the 'small ads' but ask yourself why someone would want to buy it off you and continue making the payments for another 10 years!!! (answer - they'll make money dummy!!!)

The other thing is why bother changing your mortgage at all? If the endowment is going to fall short (which it probably won't IMHO - the forecasts sent out by the Insuarnce companies had to be on a very conservative basis. As an example, our endowments are returning about 11% over 25 years at the moment whereas the projections had to be at 6% and 8% ignoring any terminal bonus)

you could always 'overpay' your mortgage to take up any slack, especially if you use a flexible mortgage such as Woolwich/Barclays Open Plan or Virgin One.

Tiggs

"The other thing is why bother changing your mortgage at all? "

because if he doesnt he cant sell his end. and that means someone else cant buy it and make a profit while he loses out.....come on tim, keep up