Endowments - Another Question
Thread Starter
Joined: May 2000
Posts: 16,980
Likes: 15
From: From far, far away...
Took out an Endowment (with Profits - Sun Alliance) in 1992 to cover a flat purchase.
Subsequently sold the flat & paid off the lender in full. I've kept the endowment going for the last few years as it seemed silly not to & to make into something like University Fees in 15 years time (
).
It has a death benefit & a minimum guarantee of the value of the property I purchased (£50K).
What I want to know is it worth putting that endowment against £50K worth of my present pay-back mortgage? And would it actually make much difference to the payments? Or any better suggestions to do with it.
Subsequently sold the flat & paid off the lender in full. I've kept the endowment going for the last few years as it seemed silly not to & to make into something like University Fees in 15 years time (
).It has a death benefit & a minimum guarantee of the value of the property I purchased (£50K).
What I want to know is it worth putting that endowment against £50K worth of my present pay-back mortgage? And would it actually make much difference to the payments? Or any better suggestions to do with it.
Scooby Regular
Joined: Feb 2001
Posts: 9,307
Likes: 0
puff, is your present loan repayment or interest only? if its the first then you dont need to use any investment alongside it....if you mean can you turn 50K of it into interest only then yes you could and the cost would drop as you are now only paying interest on that 50k, the capital being repaid by the endowment....is that a good idea? depends on the time the plan has to run, the time the loan has, your attitude to risk, blah, blah, blah.
if your loan is interest only and you have no repayment vehicle then you need something to repay the debt- your endowmnet MAY be as good as anything else, still depends on a few varibles though.
if you conclude that the loan has no need for the endowmnet then you may as well leave it running its course (assuming you can afford it)
T
if your loan is interest only and you have no repayment vehicle then you need something to repay the debt- your endowmnet MAY be as good as anything else, still depends on a few varibles though.
if you conclude that the loan has no need for the endowmnet then you may as well leave it running its course (assuming you can afford it)
T
Scooby Regular
Joined: Feb 2001
Posts: 9,307
Likes: 0
then your loans repaid by you each month bit at a time- you have no need to use an investment to clear any of the debt. if you want to alter the loan so that yo pay less each month and become reliant upon the endowmnet to clear the capital in the future then you can....back to attitude to risk.
Scooby Regular
Joined: Jul 2002
Posts: 950
Likes: 0
From: Sussex
I am not a financial adviser, and have an endowment mortgage. When I move after my wedding I will be changeing to a repayment mortgage but keeping the endowment.
When the endowment matures in 15 odd years I will just use it to pay off some of the capital from the repayment mortgage. So I am going to use mine as a investment, where the risk is it may not hit its target, but I think thats better than anything lse at present.
When the endowment matures in 15 odd years I will just use it to pay off some of the capital from the repayment mortgage. So I am going to use mine as a investment, where the risk is it may not hit its target, but I think thats better than anything lse at present.
Thread
Thread Starter
Forum
Replies
Last Post