quicksprint

My endowment policies are not worth the paper they are written on (they mature in 7 years time and fall short of the amount they are supposed to cover).
I am going to cash them in and change to a repayment mortgage for the outstanding amount...the question is
1. do i cash them in myself ?
2.do i sell them to somone who buys these type of policies(and hopefully get a bit more)?
4. do i pay off part of the mortgage with the proceeds?
5.do i bank the cash and look for a new toy?
6.do i find and 'shoot' the finanicial advisor that sold me the policies?

steve

douglasb

It's a difficult one and only hindsight when the policies mature will tell you if you did the right thing or not.

It used to be the case that surrendering the policies was the last thing you should do as the insurers basically cut back the surrender value. It was far better to either keep the policy going and continue to pay premiums, or to make the policy "paid-up" by stopping paying premiums but letting it run to maturity. If you made it "paid-up" you wouldn't get as good a return as keeping the payments going, but you'd get a lot more than you did by surrendering it (albeit a few years down the line rather than now).

Nowadays, the insurers will still sting you if you surrender the policy, but as returns are going down in the longer term there is no guarantee that you'll eventually get significantly more by making the policy paid-up.

Do a Google for "Traded Endowments" or have a look at the Motley Fool website for contact details of people who will buy the policy. By selling, you should get more than you would by surrendering.

As for what you do with the proceeds, that's up to you. Before buying a new toy remember that you took the endowments out to pay off the capital on your mortgage. If you buy a toy, the capital hasn't been paid yet but it still needs to be paid at some time.

Your choices, but there are a few pros and cons for you to think about.

Robert Rosario

Yes, buy something else

RESSE

iTrader: (1)

I have no knowledge or personal experience about these companies, just thought you would like some telephone numbers:

A1 Policy Shop 01582 881296

CCM 020 8446 8118

Shepherds 020 739 84500

Best of luck.

quicksprint

Thanks for the advise...i am going to repay the amount owing by transfering to a repayment plan.The way i see it is if i carry on paying out on the policies and they mature i am still going to have to borrow money to pay the short fall.
I am just unsure what to do when i cash them in.

quicksprint

Thanks for the numbers.

Jamo

iTrader: (23)

if i were you id keep hold of them.

imho of course

moses

mate i cashed mines, i lost 3k

if u bought it after 1998 theirs an advert i think maybe the guardian or daily mail, i can call them and they can get u a better price

never go for an endowment mortgage, the brokers mint it while we suffer

go for repayment or interest only, interest only is cheaper but u need to rely on your property value to go up, i think it would go up in 20 yrs or so haha

or u can always go for repayment and also dont go for the 1% commision crap, u can get a mortgage nowadays from private brokes for 280 quid mate plus survey fee and thats all and self certified so u can borrow alot more, without anyone looking at your sh1tty bank balance


and by the way i got 8k i paid in 11k

but i made 8k into 14k i spent it on my tuning business side, bought blitz and sard products and my own brand custom stroker kits and steel rods, and sold them and made more money in a month or 2 than i did in so many yrs with the endowment

mart360

Hi Steve,

have you filed a claim for endowment misselling??

its worth a go, it may give some return back,

if its only a small shortfall, will the bs not give a small remortgage for the amount outstanding??


Mart

Tiggs

lol...yeah...do what he says!

fast bloke

Tiggs - I've been through it 4 times and I am still stuck after the word mate.


Moses - sometimes you scare me a little (when you talk politics) and somtimes you scare me a lot(when you give 'financial advice' )

RB5201

Does anyone know who you can complain to? Phone number or address??

quicksprint

Hi Mart...started the policies before 1998.
I am losing out regardless if i keep them or sell them as i have to meet the short fall when they mature.
I can remortgage no problem......just unsure if i should pay off some of the mortgage with the proceeds or 'treat' my self

steve

Tiggs

You cant complain...its a public forum and Moses can say what he likes.

Chrisgr31

My wife and I both had endowment mortgages when we met. We have since sold both houses and bought a new one. We considered long and hard about what to do about the endowments, as bith have lost money, and both were around 13 years in.

We deiced to take out a repayment mortgage on the new house, over 20 years, as both be 58 then, and keep the endowments going. The hope is that the endowments will enable us to pay a substantial amount of the capital in 12 years time. Who knows the market may improve and they may pay all the capital off!

But who knows! Personally I'd be inclined to keep the endiwment and switch to a repayment mortgage if you can afford it.

Reminds me I must look at complaining about mi-selling, although part of me says I was aware of the risks

MMaynard

I was in the same boat a couple of years ago. If you take a look at your endowment policy there should be a minimum guaranteed payout, without any of the bonuses that they rely on to make up the shortfall. Instead of going for a straight repayment we got a new part endowment, part repayment mortgage but the endowment part was only as much as the guaranteed payout. With the original endowment policy still running it will payout halfway through the new mortgage and we can be sure it will cover the endowment part of our new mortgage, and maybe abit more if we are lucky.

Martyn.

moses

thanks tiggs