Advise with Endowment situation

[TWOKWACKS]

Hi, i have just had my endowment statement and luckily all is on track to pay off the target figure, so all good there. The thing is i have switched to repayment mortgage about 8 years ago and kept the endowment running ( don't really know why i did this ). My repayment mortgage is due to be paid off in 2 years time. My endowment is to run for 11 more years...

My question is really A: should i keep my endowment going until term end as all going well or surrender ? and B: as there will be no mortgage to pay off, will the endowment value be paid to me when term ends or what will happen to it ? Ideas / advise please.

[Sarnie]

Keep it going as you'd be very unlikely to even get the money you've put in back if you surrender it now.

And then go on a nice long holiday in 11 years time

[fandango_c]

Ask for a surrender value.

Do you want a lump sum now, or in 11 years time? Bear in mind the value in 11years time is unknown.

[Jespin]

Yep you're likely to be better off keeping it going. In any case, the money will come to you on maturity. You are likely to get back more than you've paid in on surrender due to the length of time it's been running but you would need to request a surrender value and work the maths out regarding what you've got left to pay in premiums. Be careful as there may also be some guarantees in the endowment in relation to what it will pay back in the future which would be worth keeping.

[TWOKWACKS]

Thanks for the replies, a little more info,the endowment is with Prudential. I started the endowment in sept 1998. Its due to mature sept 2023.
The monthly payment is 117.74 . The target amount is 58500. The letter i received projects 6% growth is reasonable. This would give an amount of 67600. I guess i might be better keeping it going after doing some maths.

[Sarnie]

Don't forget that the terminal bonus can account for nearly 33% of the final value.

Keep it.

[spoofking]

Sarnie said:

Don't forget that the terminal bonus can account for nearly 33% of the final value.

Keep it.

Thats assuming it's a with profits endowment!!!

If it is a WP it's possible to sell it on the second hand market, the SH value may be more than the surrender value. there are plenty of companies who may like to buy it. Once youve got a surrender value it may be worth getting a SH value. If its unit linked then it can't be sold.

Just another option for you to take Into account.

[TwigtheWonderkid]

Who was the endowment assigned to at the time of it's inception. As you now have a repayment mortgage, you need to get a letter from your mortgagee confirming they no longer have an interest in your endowment. Then send it to the endowment company and ask for an acknowledgement. This will save you hassle in years to come. Not that you'd lose your money, it'll just take time to sort out.