cashing in an endowment

[triplets]

Hi,
We have just accepted compensation on our endowment which our FA seemed to think was fair. Now do we cash it in and change over to a straight repayment one, dilemma. We have only six years to go but as you all know in six years time we may still be facing a shortfall. As the endowment is a unit linked one I don`t think we would be able to sell it. If we cashed it in and then paid off some of the balance we would be looking for a new mortgage with new life cover for around £18,000 over six years. We would like that to be flexible so that we could pay over the odds if we could afford to, any advice. Just thought that we should have a Finance section on its own in the talk menu!

You def need independent financial advice! I know that I would be tempted to ditch the endowment and damn the consequences
xx J

Can you not have a part and part mortgage? ie some is repayment and some endowment - base the endowment part on a realistic view of what it will make and have the rest on repayment? This is what we have done when remortgaging. Then you won't have to lose out by cashing in the endowment early (which you probably will do).

Does this make any sense. Not an IFA, but have a little knowledge in this area. As you have an FA, what does he/she advise?

Hi,
Our FA said that if it was him he would definitely cash it in. We cannot re-mortgage anyway until July as we are locked into one with The Lambert paying 5.9% We phoned Abbey Life yesterday and asked what the cash in value was and it had risen by £400 since we asked last week, so we may leave it until July, accept the compensation and then think again.