Sell/surrender our endowment policy now?

[Hammerhead]

We had our endowment surrender value sent to us recently (4 years to run before ending) and the surrender value is within a nats of what's left on our interest only mortgage, so we thought it might be a good time to possibly either surrender it or sell it on.

It'd be quite nice to get rid of it now and use the money we'd been paying for it/the interest only mortgage part and use that to over-pay a bit more on our repayment mortgage (which has much longer to run)

Having just done some quick sums, if we just wait to let the endowment mature (and taking the lowest projection sum as what we'd get) minus the 4 years worth of payments, we'd be slightly ahead by keeping the endowment going. However, if we sell/surrender now, overpaying the repayment mortgage would probably be a better idea (reduces overall interest paid/shortens the term).

What does the floor think would be the best way to go?

[sidicks]

Hammerhead said:

We had our endowment surrender value sent to us recently (4 years to run before ending) and the surrender value is within a nats of what's left on our interest only mortgage, so we thought it might be a good time to possibly either surrender it or sell it on.

It'd be quite nice to get rid of it now and use the money we'd been paying for it/the interest only mortgage part and use that to over-pay a bit more on our repayment mortgage (which has much longer to run)

Having just done some quick sums, if we just wait to let the endowment mature (and taking the lowest projection sum as what we'd get) minus the 4 years worth of payments, we'd be slightly ahead by keeping the endowment going. However, if we sell/surrender now, overpaying the repayment mortgage would probably be a better idea (reduces overall interest paid/shortens the term).

What does the floor think would be the best way to go?

What sort of endowment - unit-linked or with-profit? With which company?

[Hammerhead]

With profits, Aviva.

[sidicks]

Hammerhead said:

With profits, Aviva.

I’d imagine that there could be a decent terminal bonus at maturity and returns (whilst not guaranteed) are likely to exceed the interest rate on the mortgage.

[Hammerhead]

Thanks for your feedback. Will do some further thinking/calcs.

[sidicks]

Hammerhead said:

Thanks for your feedback. Will do some further thinking/calcs.

You could ask Aviva for information on payouts on similar policies in the last few years - particularly terminal bonuses on similar policies in the last few years etc.

Should be available on their website somewhere.

[Hammerhead]

Thanks again, Sidicks. I'll do that

[craig1912]

Which company did you take the policy out with- final bonus can vary but here are some from year end 2016
https://www.aviva.co.uk/adviser/documents/view/gn0...

some more info from 2017

https://www.aviva.co.uk/adviser/documents/view/cur...

[Jockman]

Remember there will be a life assurance element for the next 4 years.