I received a couple of letters regarding my Aviva endowment over Christmas and just getting round to reviewing them. I've listed what I think to the the pertinent info below.
Target Value = £56,950
Start date = Dec 1996
Maturity date = Dec 2021
Monthly payment £101.14
Current Surrender Value = £16,678 (way less than I've paid in!!)
Current projections
@ 4% = £32.500
@ 6% = £37,400
@ 8% = £43,100
Maximum promise amount = £7,950
The mortgage was increased when we moved house, but the increase was on repayment, and then I switched a further part of the mortgage to repayment a few years ago, so I now have £37,376 on interest only. My mortgage is an offset with an outstanding balance of around £51k. It is fully offset and I'm now building up savings elsewhere. I don't expect the endowment to be needed to pay off the mortgage, but who knows what is round the corner. My gut feel is to let the endowment run to maturity as surrendering now means a big hit and assuming the max promise amount is paid at least I'll get something back.
Have I missed something in all of this or is there something else I should have considered?
Target Value = £56,950
Start date = Dec 1996
Maturity date = Dec 2021
Monthly payment £101.14
Current Surrender Value = £16,678 (way less than I've paid in!!)
Current projections
@ 4% = £32.500
@ 6% = £37,400
@ 8% = £43,100
Maximum promise amount = £7,950
The mortgage was increased when we moved house, but the increase was on repayment, and then I switched a further part of the mortgage to repayment a few years ago, so I now have £37,376 on interest only. My mortgage is an offset with an outstanding balance of around £51k. It is fully offset and I'm now building up savings elsewhere. I don't expect the endowment to be needed to pay off the mortgage, but who knows what is round the corner. My gut feel is to let the endowment run to maturity as surrendering now means a big hit and assuming the max promise amount is paid at least I'll get something back.
Have I missed something in all of this or is there something else I should have considered?