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Endowments end before mortgage!
pjb7
Posts: 1 Newbie
Hi,
I have a mortgage of £106,000 which ends in 9 years time. The mortgage is made up of £27,150 Repayment and also£78,850 Interest Only. The Interest only part is covered by three endowment policies. 2 of the policies mature in 5 years time and the third runs for a further 4 years until the end of the Mortgage Term. I would like to know what happens to the money from the 2 Endowment policies that mature in 5 years time. Does the Mortgage Lender hold onto the money for the remainder of the mortgage term , does he pay it off the mortgage immediately or does the money come to me to decide what to do with it. I want to know because there is a projected shortfall on those two policies and I am looking at all of my options to make up the shortfall. Any info please.
I have a mortgage of £106,000 which ends in 9 years time. The mortgage is made up of £27,150 Repayment and also£78,850 Interest Only. The Interest only part is covered by three endowment policies. 2 of the policies mature in 5 years time and the third runs for a further 4 years until the end of the Mortgage Term. I would like to know what happens to the money from the 2 Endowment policies that mature in 5 years time. Does the Mortgage Lender hold onto the money for the remainder of the mortgage term , does he pay it off the mortgage immediately or does the money come to me to decide what to do with it. I want to know because there is a projected shortfall on those two policies and I am looking at all of my options to make up the shortfall. Any info please.
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Comments
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If you look at the documentation on the Endowments it should say if there are any other parties to it - i.e. your lender....0
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Assignment nowadays is not common but older plans may still have an assignment. You can get this removed fairly easily by getting the lender to write to the insurer confirming they have no interest in the policy. Most will do this even if your lending is still with them.
Assuming no assignment, the policy will mature and the proceeds sent to you to do with how you wish.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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