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Original poster

Small Endowment matured, what should I do with it, please advice

20 replies

hulahoopsilove · 13/03/2015 18:39

ok current payback is £12k (should of made £17,500) mortgage left to pay is £19k. One DS age 10.

I really dont know what to do. Mortgage payments are fairly small (£400 a month) with 3 years left, so manageable.

I dont want to blow it on decorating, new car holiday (as I can see my DH is thinking) Really want to put to away I think for DS education, help towards 1st house etc.. But really dont know how to go about investing. No nothing about stocks shares and lost so much over the years with this.

Anyone give any advice please

OP posts:
JoanHicksonMIfive · 13/03/2015 18:44

Why do you not want to pay towards the mortgage?

Original poster
hulahoopsilove · 13/03/2015 18:47

I think because its quite manageable and low and if we paid it off or most of it its not as if we'd miss the payments if you get what I mean.

My DS wont inherit anything from his grandparents (none are here) so its almost as if I feel I should put this away for his future

OP posts:
UrsulaBuffay · 13/03/2015 18:48

If you have an endowment as a mortgage repayment vehicle is your mortgage not still interest only? Either way you should use it to repay as much of the mortgage as possible

JoanHicksonMIfive · 13/03/2015 18:51

Pay off mortgage tge put current mortgage payments into an ISA for DS?

Original poster
hulahoopsilove · 13/03/2015 18:52

Ah no sorry I changed mortgage when there was all the hoo ha about short falls, so we have a repayment but I kept the endowments on...sorry should of said

OP posts:
UrsulaBuffay · 13/03/2015 18:54

How come there is 19k left to pay but only 3 years left?

Teeb · 13/03/2015 19:01

Interest rates are poor everywhere right now, I'm fairly certain you are paying more on your morgage than you are likely to make if you were to invest it currently. Pay that mortgage off ASAP, seriously. Then you transfer the monthly mortgage direct debit into a savings pot. If you get the mortgage paid off in the next 12 months, then £400 under the bed every month would be 34k on your sons 18th birthday. As things stand, property is one of the best investments of today.

ginmakesitallok · 13/03/2015 19:01

Pay off the mortgage! £400 a month for 3 years will leave a balance at the end,, how are you going to pay that?

Original poster
hulahoopsilove · 13/03/2015 19:13

The endowments were taken out and I remember the advisor saying lets's set them so they finish before your mortgage so that you can pay off the mortgage early and have a little bit extra aside. I have another one that will mature soon as well again wont make much prob £8k

OP posts:
Original poster
hulahoopsilove · 13/03/2015 19:16

£400 x 12 over 8 years when DS is 18 will give £38k Christ when you look at it like that plus interest on top.

OP posts:
specialsubject · 14/03/2015 15:20

trouble is that inflation will give it a fair hammering - inflation is higher than they say.

pay off the mortgage and do start saving, put into a current account which pays interest. Needs a bit of work but you can get 5% on some money and 3% on up to 20k.

whooshbangprettycolours · 14/03/2015 17:23

I'm afraid you're better of paying off your mortgage if you won't invest in anything other than cash.

fluffapuss · 15/03/2015 11:58

Hello Hula

If you read www.moneysavingexpert.com

They always recommend

  1. Pay off debts first eg mortgage, loans, credit card

  2. Save tax free in ISAs - tax free allowance per person, per child

  3. Save in current accounts

  4. Pension

TalkinPeace · 15/03/2015 12:30

Pay off the mortgage - do not give the bank any more interest than you have to

THEN
get your ISAs filled and
premium bonds (mine are paying me £25 a month tax free at the moment)
then pension

Trudester · 15/03/2015 17:09

I'm assuming you made a complaint to the company/ies that sold you the endowments if they haven't reached their targets, particularly if the adviser/s who sold them assured you that would reach their maturity value? You may be entitled to money from them if you were mis-sold.

I agree, you should pay off your mortgage if you haven't got any redemption penalties.

TalkinPeace · 15/03/2015 17:19

trudester
NO 1980s endowment hit target
only a fraction come under mis selling
both of mine fell short by huge amounts but within the rules

pookamoo · 15/03/2015 17:20

Definitely put it on the mortgage.

Trudester · 16/03/2015 10:59

TaklinPeace - 1980's endowments regularly reached targets particularly if they were With Profits. Unit-linked plans were more problematic, particularly if the Adviser played around with the assumed growth rates in order to lower the premium for the client. I can't see any reference to when the endowments were taken out, whether they were pre or post A day. Even then, I have seen many successful endowment claims from the early 80's simply because firms don't hold adequate records. It's just a thought for the poster in case she hadn't explored this avenue too (if she felt she was mis-sold).

gabsdot45 · 16/03/2015 12:19

I'd squander some of it and pay the rest off the mortgage. That way your mortgage will be finished much earlier than expected and you will have extra money for your children's eduction etc

Original poster
hulahoopsilove · 16/03/2015 12:22

WE took our endowments out via an independent advisor, I wrote a letter claiming and it came back that we were advised so I didnt take it any further

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