Can I Surrender Endowment To Part Pay Off Mortgage While Receiving Benefits?

martinsimpson

Hi All.

Like most people's endowments mine has performed badly. It's a 25 year policy with 5 years left to run and I expect the shortfall to be around £18,000. It would be better to surrender the policy now and use the money to pay off more than half of my mortgage. But if I do this will I violate any DWP rules (£6,000 savings rule for example) and have my benefit stopped or reduced? Will they allow me to surrender my endowment and use it to part pay off my mortgage as the endowment is intended to do. I don't want to keep it while the world markets are in utter turmoil

Anyone have any reliable sources of information about this?

Many thanks

dunstonh

As long as the maturity or surrender it paid off the mortgage then you are not breaking any DWP rules. If you do not put it immediately into the mortgage then the DWP can include it in the means test.

I don't want to keep it while the world markets are in utter turmoil

Depends on the endowment. I had some Pru policy details through today and their values are up after exceeding 8% net growth in the last year.