Have endowment worth 15k; wish to cash it in & switch to repayment mortgage?

Question

I already have sufficient life cover through my employers and the extra cash would help pay off credit cards and reduce mortgage balance by around 10%. Would this be a wise decision? What else do I need to consider?

I already have sufficient life cover through my employers and the extra cash would help pay off credit cards and reduce mortgage balance by around 10%. Would this be a wise decision? What else do I need to consider?
Extra info: the endowment is relatively new and is not underperforming significantly, the decision to switch is not down to misselling as I fully understood the risks when it was taken out. What I really want to know was, aside from losing the life cover, are there any other caveats?

Answer 1

A conversation with a Independent Financial Adviser is your best option. The first meeting is usually free and without obligation. If its in your interest to do so you may be better off selling your policy in the traded endowment markets, you may get a higher price than cashing it in with your endowment company.

Answer 2

Good basic idea, but depends on who endowment was with, what it is now worth, how well it is doing etc etc. Never cash it into to provider, if you want rid of it, sell it; loads of companies will sell it for you, see who offers the best deal.

Have you checked into mis-selling compensation (it obviously doesn't suit the purpose that it was originally taken for). Maybe the compensation would help towards your debt.

Have you considered keeping it as a savings plan? If others will buy it from you, why not keep it yourself and reap what you have sown (the extra life cover is surely a bonus, no matter how much you already have elsewhere).

Answer 3

contact me at [e-mail]. I have a source who might be interested in listing your endowment