SimpleSimonSays
Club President
FFS - Predictive text again. Nobber says it.
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Endowment mortgages
- Thread starter Dirty Harry
- Start date
10 years of a bull market or so probably helped. As long as you aren’t reliant on it hitting target to clear the mortgage it’s a good result. Well done! (I gave up on ours the first time I remortgaged in the early 2000s. Realised something wasn’t quite right(probably linked to the internet becoming a source of information)
I got an endowment mortgage on my first house (1998 - bought for 32,750) but when I sold it about 5 years later (for 80,000) then you pay off the remainder of the mortgage and as far as I'm aware that cancels out any 'endowment' policy? I bought my 2nd house a year and a half later but went for repayment. Sold that place nearly two years ago when I came back to Oz.
OP
OP
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- Jun 2, 2015
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I think the endowment policy only gets cancelled if you actually cancel it? Otherwise, it should still be 'live'. I'd check that out if I were you, Muzza. It's worth checking all these old policies. I used to pay into a small pension scheme when I was younger, only for a few years, then stopped it. I always thought I'd cancelled the policy and had forgotten all about it until a couple of years ago I received a statement out of the blue after years of silence about it which told me the small amount I had paid in should be worth a pension of about £100 quid a month if I were to start taking it now, or a cash lump sum, or just leave it to continue growing. I was well chuffed. I didn't really like mentioning this and the successful endowment policy just now as I know a few folk might be struggling on furloughs etc and didn't want to sound insensitive but was just wondering what other folks experiences were.
Ah okay, mate I can't remember what the hell I did with it to be honest. All my docs are in a folder boxed up somewhere in me mum's attic. Maybe I'll have to have a look when I'm back over next. Problem I see with things like that is if you move a bunch of times and have different email addresses etc they wouldn't be able to contact you, so would have to be the other way round.
OP
OP
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That's right, though I have absolutely no idea how that pension company found me as I had also moved two or three times without notifying them. I'm speaking to them in a few weeks so will ask!
I've posted the details on here once before and can't bring myself to do it again but in short.... I had a 16 grand shortfall on my ( sure thing ) endowment and lost 12 years worth of payments into a works pension scheme.... Am I bitter? Too feckin right I am.
My experience of Endowment H :
Started off bonuses good for 10 year then warnings came about so jumped to Repayment,
Kept it going as a saving thing although not performing very well .... loads of warning letters but as on Repayment not worried.
Finally matured and about 5k short but as with Standard Life got some free shares so gap narrowed plus claimed misselling so got just short of 2k compo.
Don't lose sight of the final bonus which used to be very good but whichever way can mean quite a tidy sum.
Think you can ring up and get a quote on final bonuses but think it is quoted as a % if memory serves.
Hope this helps
Started off bonuses good for 10 year then warnings came about so jumped to Repayment,
Kept it going as a saving thing although not performing very well .... loads of warning letters but as on Repayment not worried.
Finally matured and about 5k short but as with Standard Life got some free shares so gap narrowed plus claimed misselling so got just short of 2k compo.
Don't lose sight of the final bonus which used to be very good but whichever way can mean quite a tidy sum.
Think you can ring up and get a quote on final bonuses but think it is quoted as a % if memory serves.
Hope this helps
OP
OP
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Thanks for the info Strongy.
Waddie
0
Just be aware that the value of it may go down. If I had cashed mine in a year before my mortgage finished I'd have been quids in, as it was a year later I'd lost a couple of grand on the value!
They tried to sell us one, when they banged on about how much it could get us, I asked how much THEY would get out of it. Then said We didn’t want one because if the stock market crashed, we could still owe money after 20 years. They said the chances of that were virtually nil, we all know what happened in the 90s. When they mentioned nest egg for our old age, the reply was we could get run over by a bus and we’ll never get the benefit, no ta, we’d rather have the money today.
I know a chap who's endowment has just failed to meet its target leaving him short on paying his balance off, but i don't give a shit cause he's a Rovers fan.
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On the nest egg bit, it it’s always worth saving a bit extra in a pension if you can afford it. If you get run over by a bus, you can leave it to your kids. I don’t trust the government to give us a pension we can live on.
I have 4 pensions which are all dormant, one was a little Small forest final salary. Not cashing that one in. The others will probably pay £300 a year tops. Hardly worth the paper they were written on. I also have an NHS pension, one of the newer ones, not as good as the old ones but still decent. I am very lucky though, that I have paid full stamp, the hubby works at aerospace So a very good pension pot and when it comes to cash I am a saver. I reckon the next big con will be, anyone with a works/private pension will not get a state pension, so all that sacrifice all your life will count for nowt.
OP
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I've thought exactly the same, 06. They'll scrap the state pension at some point for those people with private ones. If you've got a few small pensions here and there, I think you can transfer the value of each to another single pension pot, which could possibly make the pot grow more?
3 pensions of £300 equates to a combined equivalent pot value of about £50,000
You must use expensive paper. as Harry says you might be able to do something with them as a combined pot but the existing benefits may be better left where they are if they have inbuilt rises and spouse elements etc
But yes, pension tax relief and private pensions will be targeted before long, that much will be true
The first thing to go will be the triple lock pledge on state pensions
between that and higher rate relief he can “build, build, build”
The pensions will pay £300 Absolute tops a year combined, not each. My sister has lost thousands in the last few months and her mates lost even more value, the small ones I have are worth less this year than last.
You might be surprised. I had a very small pension from when I was an apprentice plumber at Tom Finney’s in the early 80’s. I’d paid into it for just 3 years from the age of 18 to 21, when I left. Every year they sent me a statement to my mums address, ( obviously I wasn’t married then), I told her to sling em in the bin as it wasn’t worth the effort to open them. 3 years ago I decided to have a look and rang them to ask the surrender value of the policy as I was 55 at the time. I expected them to say about £200. I was staggered to learn I could get a one off payment of £9,500, subject to income tax of course. Needles to say I cashed it in. It was simply money for nothing in my eyes.