If you want to make changes to your investment or savings plan, you should talk to your product provider or a financial adviser. They should be able to tell you if the changes below are possible on your particular investment.
Extend the term.
You could check whether it is possible to rearrange the investment or savings plan over a longer term, and if you are able to do so, ask your lender to extend the mortgage term to match.
Gives you more time to pay off the loan by making more payments into your policy if you can’t afford to increase your payments.
You may face extra charges, and a tax liability, if you vary an endowment policy. So it may be
a good idea to take advice first.
The growth of your investment or savings plan is still linked to the stockmarket, so there’s still
no guarantee it will reach its target amount.
Not a good idea if it means taking your mortgage into retirement, unless you are sure you’ll be able to afford it.
The longer the term of the loan, the more interest you’ll end up paying in total.
Top up your investment or savings plan by paying in more each month.
You should ask your product provider if it is possible to do this and, if so, whether there are any charges. If there were high charges, it may make this option poor value for money.
You may also face tax liabilities, so you may want to take advice.
Your investment or savings plan is still linked to the stockmarket.
You could be worse off than if you used the same monthly payments to reduce your mortgage.
Under a personal pension only part of any increased savings can be taken in cash. And nothing can be taken before age 50 (rising to 55 by 2010).
Link to Previous article: Mortgage Endowment Policies
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