Andy McCord

after paying for 11 years to winterthur life ive decided to cash it in & move to repayment. ive actually paid in £7,731, been told its only worth £6,117 making a grand old loss off £1,614 what a good idea that was!!!, still gives me a bit off spending power though

Big Daz

Only a £1.6 K loss !!
I cashed mine in last year and after 8 years. Had paid in over £6K to get just over £2.3K back.
Daylight Robbery ( different company though )

Big Daz

mwp

to make it worse ... don't forget inflation decays the value as well

south-star

Isnt there a market for secondhand endownments......or you could try just selling it secondhand.
Never thought about it before but could you sell it on ebay?

fast bloke

Andy - Is it unitised or with profits?

Andy McCord

unfortunately it all units, not with profits, the sharks are falling over themselves to buy with profit ones, a mate off mine is doing the same, hes been paying for 8 years with countrywide assured & hes only been offered £2,750 after paying in £5,280!!

to be honest ive been struggling for a while trying to decide what to do, orig endowment was to cover £38,000 last prediction was to only payout £25,000 over 25 years, but i would paid in £18,000 to get that so i decided enoughs enough & take the plunge, only time will tell if ive made a wise decision

Alpine99

I took the decison to cash all mine last year after getting the... 'We gave you crap advice in the first place so please give us more of your hard earned", letter..

I have to say I don't care if it was the right decision or not financially.. I'd lost my faith in the companies involved and the LAST thing I was prepared to do was give them more money.. I think it sets a precedent for them to come back again in future years..

Paid the proceeds off the mortgage and swapped to re-payment..

Tiggs

"still gives me a bit off spending power though "

yep, as did taking the option of endowment over repayment at the time.

mwp

another view is ... why bother worring about repaying the principal ?

if you stay on interest only from your 20s until you retire ... given the history of house prices in this country your mortgage outstanding will be betwen 1-5% of the property value ... at which point you sell and buy somewhere for 1-5% less.

fast bloke

good plan MWP - how much less would it cost for a 100k loan on interest only for 40 years against repayment for 25?

fast bloke

240000 for interest only and 190000 for repayment if all other things are equal

mwp

true ... but what did you do with the principal payments when you were paying interest only for the 1st 25 years ...

Chrisgr31

My endowment is with Winterhurer Life to, and I have been paying in for just under 10 years. On the last valuation I had the value was about the same as payments made and given the performance of the stock market lately undoubtedly it has fallen since.

However I have decided to stick with it. I hope the market will pick up, bit could be wrong. However I am working on the theory that in 15 years time the difference between the endowment payout, and the original sum borrowed will be a small percentage of the total value of my house.

However its all a gamble!