Endowment mortgages

jakehake

Preachs PA
Staff member
Patron
Aye, basically, it's previously been saying the is a high risk of shortfall, until today, when the annual statement said it is on course to meet, and go beyond, its 35k target. It suggested there could be 36k or, if investments do well, 39k
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)
 

Muzza

Advisor to the Owner
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
Dirty Harry

Dirty Harry

Advisor to the Owner
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.
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.
 

Muzza

Advisor to the Owner
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
Dirty Harry

Dirty Harry

Advisor to the Owner
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.
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!
 

Liberation

Forum Patron
Patron
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.
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. :D
 

Strongbow

Advisor to the Owner
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
 
OP
Dirty Harry

Dirty Harry

Advisor to the Owner
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
Thanks for the info Strongy.
 

northender0602

Forum Patron
Patron
You did right switching to repayment mortgages. Very nice to have a nest egg when the endowment matures. Are you still using it for part of the mortgage or will it all be yours?

I remember going for my first mortgage and insisting that I didn’t want an endowment mortgage. In those days you had to personally meet the branch manager and he kept insisting I was missing out on a fantastic opportunity. After about an hour I told him enough was enough, if he wasn’t going to give the repayment mortgage I wanted, I’d try elsewhere and got up to leave. He gave me the repayment mortgage. 😀

They got huge commission for selling endowments, how they got away with it was a disgrace.
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.
 

222Mark

Serial killer of note
Patron
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.
 

LostinSpace

PNE Exile
Patron
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.
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.
 

northender0602

Forum Patron
Patron
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 woods 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
Dirty Harry

Dirty Harry

Advisor to the Owner
I have 4 pensions which are all dormant, one was a little woods 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.
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?
 

jakehake

Preachs PA
Staff member
Patron
I have 4 pensions which are all dormant, one was a little woods 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.
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
 

PNEESSEX

Forum Patron
Patron
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
 

northender0602

Forum Patron
Patron
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 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.
 

Henrys Cat

Forum Patron
Patron
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.
 
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