Toepoke Posted December 8, 2014 Share Posted December 8, 2014 I think if you surrender it you're liable to pay tax? I know it's not a good idea to make adjustments to them once they start. A real bummer I'd previously had a couple of shorter term endowments that served me well. I guess the magical golden goose was only going to lay a finite number of eggs... Quote Link to comment Share on other sites More sharing options...
Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 I think if you surrender it you're liable to pay tax? I know it's not a good idea to make adjustments to them once they start. A real bummer I'd previously had a couple of shorter term endowments that served me well. I guess the magical golden goose was only going to lay a finite number of eggs... My financial adviser (teecee- ...) told me you don't pay tax on the surrender value after you've held the endowment for a certain length of time (ten years?). I do quite like having it as it's my financial 'joker' should I ever hit really hard times. Quote Link to comment Share on other sites More sharing options...
AberdeenAngus Posted December 8, 2014 Share Posted December 8, 2014 Do companies still buy endowment policies? Used to be a better option than surrendering apparently. Quote Link to comment Share on other sites More sharing options...
Barney Rubble Posted December 8, 2014 Share Posted December 8, 2014 I'm pondering wherever to cash mine in - it's on target (£32,000) but still another eight years to run (£60 per month). Out of curiosity I might give Zurich a bell to see what its surrender value is. Don't cash it in - pay off your mortgage from your war chest and view your endowment as a pension pot. Quote Link to comment Share on other sites More sharing options...
Charlie Endell Posted December 8, 2014 Share Posted December 8, 2014 Don't cash it in - pay off your mortgage from your war chest and view your endowment as a pension pot.Sounds like good advice to me. Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 8, 2014 Share Posted December 8, 2014 They have been taking out these high mortgages because the cost of housing has increased with no cheaper alternatives and without taking high mortgages they wouldn't be able to get housing. IMO, folk need to start to learn how to live within their means. One of the biggest problems facing society and individuals is unsustainable personal debt. I couldn't afford to buy a house until was in my 30s so I didn't. I think financial planning should be compulsory in all schools. Far too many people don't understand what the consequences are of getting into unsustainable debt. Quote Link to comment Share on other sites More sharing options...
EddardStark Posted December 9, 2014 Author Share Posted December 9, 2014 IMO, folk need to start to learn how to live within their means. One of the biggest problems facing society and individuals is unsustainable personal debt. I couldn't afford to buy a house until was in my 30s so I didn't. I think financial planning should be compulsory in all schools. Far too many people don't understand what the consequences are of getting into unsustainable debt. Do they still have Arithmetic O Levels in Scotland as well as Maths? For me this was a fantastic idea to split these. Quote Link to comment Share on other sites More sharing options...
hampden_loon2878 Posted December 9, 2014 Share Posted December 9, 2014 I have taken out a mortgage for 155k, my monthly payment is a little over 750, if there were to be a interest rise of 3% it would take my payment to ovrr 1100 a month..that is what i looked at when deciding if i could afford my mortgage, anymore than 3% i think i would be struggling...whats the chances of them rising above 3% in the near future? On another note, the amount of times i heard "im voting no because interest rates will rise if we vote yes" theres only one way they could go and that is up Quote Link to comment Share on other sites More sharing options...
EddardStark Posted December 9, 2014 Author Share Posted December 9, 2014 I have taken out a mortgage for 155k, my monthly payment is a little over 750, if there were to be a interest rise of 3% it would take my payment to ovrr 1100 a month..that is what i looked at when deciding if i could afford my mortgage, anymore than 3% i think i would be struggling...whats the chances of them rising above 3% in the near future? On another note, the amount of times i heard "im voting no because interest rates will rise if we vote yes" theres only one way they could go and that is up I doubt they will hit 3% for a long time. I suppose its about anticipating longer term and making changes/contingencies well in advance. Have a read of this http://www.thisismoney.co.uk/money/news/article-1607881/When-UK-rates-rise.html Quote Link to comment Share on other sites More sharing options...
stocky Posted December 9, 2014 Share Posted December 9, 2014 First mortgage in 1991 was a fixed rate of 12.99% It was a good deal. PHUKKSAKE.... I got a fixed rate of 0.5% ABOVE base rate 7 years ago when it was 5.5%.. laughing now as I have a 1% rate,,,, Quote Link to comment Share on other sites More sharing options...
stocky Posted December 9, 2014 Share Posted December 9, 2014 Low interest rates are here for the foreseeable future, i cant see it going above 3% in the nextten years, the economy simply cant handle it agree, Japan went through the same recession thing in the 90's and had low interest rates for around 20 years.... Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 9, 2014 Share Posted December 9, 2014 In the longer term it's inflation that worries me. It wouldn't surprise me if it's back to 1970s levels in 10-15 years time. Quote Link to comment Share on other sites More sharing options...
Khana Lagur Posted December 9, 2014 Share Posted December 9, 2014 agree, Japan went through the same recession thing in the 90's and had low interest rates for around 20 years.... ...and look at the precarious position Japan now stands at - back in recession. Japan isn't a good example to look at because it's predominantly an export economy and its central bank was trying to protect its export market at all costs. Japan is one of the worst market interventionists. Interest rates are the primary tool to control your economy. When you have such low, or negative rates, you have almost no control left (other than QE). You can't have either for prolonged periods or you end up like Japan. Quote Link to comment Share on other sites More sharing options...
stocky Posted December 9, 2014 Share Posted December 9, 2014 is Japan worse than we are? I also thing politically Interest rates wont go up much, a wee bit after the election but that will be it. far too many people in 'middle england' will be hurt by an increase. I am benefiting from low interest rates, so long may they continue, I can take a bump up, but would rather not. Quote Link to comment Share on other sites More sharing options...
Larky Masher Posted December 9, 2014 Share Posted December 9, 2014 agree, Japan went through the same recession thing in the 90's and had low interest rates for around 20 years.... Japan had stagflation which is a different from a recession. Quote Link to comment Share on other sites More sharing options...
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