Unlinking endowment from mortgage

surrobeth

Several years ago after a red letter from our endowment company we moved our mortgage from interest only to repayment but continued to pay our endowment.

We've not told the endowment company that we've done this, should we do so?

Also, does this unlinking have any tax implications?

Thank you to anyone who can help. :T

Mortgage_Help_4

You do not need to tell your endowment company that the policy is no longer supporting an interest only mortgage as long as it is not assigned at present to your lender. If it is you can have it discharged and reassigned to yourself. There is no tax implications to this either so the answer is no and no.

surrobeth

Thank you very much.

Mortgage_Help_4

You are most welcome :beer:

dunstonh

If your policy is assigned to the lender you will need to get the assignment revoked. Otherwise come maturity you will not get the funds, the lender will. Or you will have to seek to have the assignment revoked then. People that have waited have found that over the years, lenders get merged and records get destroyed and that getting the assignment removed is a right pain in the backside.

If there is no assignment then there is no issue. You tend to find that policies stopped being assigned in the mid to late 90s.

Captain_Chaos_2-2

Hi there , the only thing you need to do is phone your mortgage advisor and ask them for a letter stating they have interest in the policy any longer. On receipt of the letter copy it keep one for yourself sen the other to the endowment company and they will pay the funds directly to you instead of the mortgage company.

hope this help

dunstonh

Mortgage advisers cannot un-assign a policy. The lender has to state they have no interest any more. Your adviser, if you have one, should be able to facilitate the correspondence but it is the lender that needs to issue the letter.

Mortgage_Help_4

The policy is not assigned or the orginal poster would have come back and stated this!!!

dunstonh

Mortgage_Help wrote: »

The policy is not assigned or the orginal poster would have come back and stated this!!!

The OP has neither stated it is assigned or unassigned. However, they did say it was linked to a mortgage. Endowments are not linked to any mortgage explicitly unless they are assigned to a lender.

Most members of the public wouldnt have a clue of a policy was assigned or not. One of the biggest issues with maturing plans being held up being paid is due to assignment that is no longer required. In some cases it can take 6 months to get an assignment removed (mostly on companies who have sold their mortgage book multiple times over). So, it is worth making sure before you get to maturity.

Mortgage_Help_4

Its no big deal getting the policy reassigned. I am new to posting on this site and after 24 hours I am giving it up as a bad joke as the site does not seem to be about helping people with basic sound advice. It seems that it is about nit picking with other peoples comments who are trying to help etc. Already I have had some clown state mortgage adviser maybe tax expert no... then finish his post stating I am a tax expert etc big whoopee do!!! as I never gave tax advice and anyway you cannot give advice on sites you can only give comments (check FSA rules etc). Why doesnt everyone just stick a straw up Martin Lewis bum and be done with it!!!! Afterall he has no mortgage advising experience (doesnt need it as FSA allow him to bend the rules). Martin Lewis has done well copying other peoples work and making it work for him. Well done in seeing a niche market etc. but lets not kid ourselves on!!!!:beer::beer::beer::beer::beer:

opinions4u

Mortgage_Help wrote: »

Its no big deal getting the policy reassigned.

It is if you're expecting a cheque for several thousand pounds, have plans to spend it and find yourself snookered by the pathetic admin of a centralised lender that no longer trades from the address they had 25 years earlier!

I would recommend anybody removing an endowment policy from a mortgage should get a letter from the lender (for the life assurance company, stating no interest) at the time, rather than the point where they want to release the value of that policy.

I am new to posting on this site and after 24 hours I am giving it up as a bad joke as the site does not seem to be about helping people with basic sound advice.

I'd urge you to stay. Your views are welcome and relevant.

Different people with different experiences, knowledge and occaisonally agendas post here. Some are worth listening to. Others aren't. It's like society as a whole in many ways!

It seems that it is about nit picking with other peoples comments who are trying to help etc.

I don't mind being picked up on something if its inaccurate. Occasionally the "nit picking" as you call it can save a thread going off at a tangent that is unhelpful to anybody. Clarifying the detail is helpful.

Why doesnt everyone just stick a straw up Martin Lewis bum and be done with it!!!! Afterall he has no mortgage advising experience (doesnt need it as FSA allow him to bend the rules). Martin Lewis has done well copying other peoples work and making it work for him. Well done in seeing a niche market etc. but lets not kid ourselves on!!!!

I don't particulalrly like Martin Lewis and some of the "angles" MSE reports from, but I think his site has value to many and anything that encourages people to sort their finances out is a good thing.