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Endowments? Did anyone have one? And what did they do with it?

(32 Posts)
nkf Wed 06-Aug-08 14:50:06

And why is it so difficult to get any decent advice about them? I've asked various advisors what I should do with mine and they all shake their heads and say "they weren't a good buy?" but when it come to advice, nada.

The choices are:

i) cash in and pay into pension
ii) cash in and pay into some other kind of saving vehicle.
iii) put head in sand for another five years until it matures. But then what?

Pension I guess.

nkf Wed 06-Aug-08 16:07:32

Too dull eh?

Cappuccino Wed 06-Aug-08 16:08:23

I cashed mine in halfway through and stuck it in the mortgage

it was tiny, mind

saltire Wed 06-Aug-08 16:11:11

We have just cashed ours in and used £10,000 to reduce mortgage. it was an endowment mortgage we ahd, we've ahd huge problems getting any sort of "forecast" about how much the shortfall is/was going to be.

southeastastra Wed 06-Aug-08 16:11:24

oh blimey we have one i don't understand it at all. we can't change to a repayment as it would be nearly double.

we got compenstation for mis-selling at it was a crappy £500 odd.

southeastastra Wed 06-Aug-08 16:11:56

so i suppose i am sticking my head in the sand and trying to ignore it

saltire Wed 06-Aug-08 16:15:12

We're lucky, our payments for switching to a repayment didn't go up that much, from £186 to £224. We have beent trying to get compensation but it's a struggle, not helped any by the company Prudential having their call centre and custmoer service staff based in india. They struggle to understand me and I struggle to understand them, calls to ask 1 simple question can take up to 45 mintues!

nkf Wed 06-Aug-08 16:46:49

My mortgage is a repayment. It's just I never cashed in the endowment because I didn't know what to do with it. But I know it's a bad deal.

cornsilk Wed 06-Aug-08 16:48:44

We haven't done anything. Will wait till the end of the term and then pay off the shortfall. Is that the wrong thing to do then?

LIZS Wed 06-Aug-08 16:49:37

Ours are still running, 7 years to go .... Mortgage no longer fully dependent on their maturity value as part repayment.

MaloryDontDiveItsShallow Wed 06-Aug-08 16:49:45

Message withdrawn at poster's request.

cornsilk Wed 06-Aug-08 16:50:39

will the credit crunch make them even worse?

mankymummy Wed 06-Aug-08 16:53:15

you can sell them you know, will get more for it than cashing it in with the provider.

nkf Wed 06-Aug-08 16:53:19

Malory. I have looked into cashing mine in. What I can never find out is what to reinvest it in.

MaloryDontDiveItsShallow Wed 06-Aug-08 16:54:06

Message withdrawn at poster's request.

nkf Wed 06-Aug-08 16:56:50

It costs about £60 a month. And the last time I checked the surrender value was around £25k. It will deliver just over £40k in five years time (perhaps). It has a life assurance element but I could probably get that cheaper.

Basically, I'm about to start a job with a decent pension scheme and I wondered if I should cash in the endowment and buy as many extra years as possible.

saltire Wed 06-Aug-08 16:58:57

We were going to sell ours, until we discovered that it wasn't, as we thought as "with profits" endowment, it was a "with profits unit linked" endowment

nkf Wed 06-Aug-08 16:59:27

Is "with profits" better?

MaloryDontDiveItsShallow Wed 06-Aug-08 16:59:54

Message withdrawn at poster's request.

nkf Wed 06-Aug-08 17:01:30

But as an investment it's poor isn't it?
A poor rate of interest for such a long term saving? That's what's always bothered me.

MaloryDontDiveItsShallow Wed 06-Aug-08 17:03:05

Message withdrawn at poster's request.

saltire Wed 06-Aug-08 17:04:26

Apparently a unit linked endowment has no resale value at all. The lovely man from the FSA did explain it too me. So not only were we facing a £10,000 shortfall, we couldn't get rid of the bloody thing

cocolepew Wed 06-Aug-08 17:05:41

Our mortgage was part endownment part interest only. There was going to be a shortfall, so we cashed it in and changed the mortgage. My friend changed her mortgage but has kept her endownment as a savings.

nkf Wed 06-Aug-08 17:06:45

That's pretty much what i did. But every so often I keep thinking what a rubbish savings vehicle it is.

MrsMuddle Wed 06-Aug-08 17:30:49

We've still got ours, but have changed to repayment mortgage. I asked an IFA what to do, and he suggested making them "paid up", which means that you don't pay any more into them, but you don't cash it in until the original date.

However, I didn't get round to doing this, so I'm still paying in, hoping that in 8 years I'll at least get back enough to cover my payments. I'll then pay off a chunk of mortgage.

It's rubbish - I'd have been better sticking the money in a box under the bed.

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