Paying into an endowment for a part of our mortgage.......

[lulumama]

the majority is on capital repayment

it was predicted to fall short, but am concerned it might well end up worthless... has another 12 years to run...

cash in?

carry on?

stop paying in to it and pay it into something else?

nothing is safe at the mo!!!!

Look at the FSA website for their Endownment Factsheet. if you are worried you should take independent financial advice. There are many options, eg take another investment vehicle, pay off some of the capital, etc but without knowing your circumstances it's difficult for anyone to give you advice.

PS When you took the endownment it would have said in the terms and conditions that you wouldn't necessarily get back what you have paid in.

Is it 'with profits'? Then its probably worth hanging onto. If you really want to get rid of it, don't cash it in, tout it around and see if you can sell it on. Not sure how easy it would be given the current climate but definitely worth a try. Usually loads of adverts in the money pages of the broadsheets at the weekends or your financial advisor might be able to help if you have one. HTH

thank you, i realise they do tell you that you won;t neccesarily get back what you pay in, but when DH took it out, before i met him, endowments were the way to go.. it was not mis-sold.

I thikn I will call our IFA on Monday morning and ask his advice, if we are better of paying into a savings account every month, then that is worth looking at

thanks veyr much everyone

You need to look at what they will charge you (market valuation adjustment) to get out. Dh bought a policy when he was 18, and we explored getting out of it as it was one of those policies that is now making no profit at all. However, the MVA for stopping the policy was in excess of £7k (we would lose all bonuses accrued), and so it is cheaper to keep paying the £40 per month for the next couple of years than to lose that much money.

We have just surrendered ours, we are going to pay £10,000 off our £30,000 mortgage and switch to a repayment one. it worked for us, we are however in the lucky position that DH will get a pretty decent gratuity when he leaves the RAF. ours was going to have a £10-12,000 shortfall

ok, tahnk you for that, i will make some phone calls on monday and see what is what, we pay a a fair whack into our every month and if it could be better used elsewhere, i;d rather do that than keep falling shorter and shorter

Don't forget you will get life cover as part of the endownment and you will need to make arrangements for this.

thank you , we have otehr life cover in place .but good point !