Endowment maturity

luckychucky_2

Hello, one of our three endowments is maturing in December 2010. The company (Prudential) that we have the endowment with says the total sum is passed to our mortgage (Newcastle Building Society). Upon talking to Newcastle they have said that our tie-in does not finish until October next year so when the endowment gets passed to them we will have to pay a redemption. I explained that when we took out the package Newcastle must have known about our endowment finishing and she replied yes. This was not explained when we took the package out, but she did say that it will be in the small print of the paperwork. I said all our dealings were done over the phone and at no point were we told that we would have a redemption on endowments.

What should our next procedure be. Not only will we have a shortfall on our endowment, we are now being shortchanged by a redemption.

The lady that we spoke to at Newcastle did say to write a letter explaining everything but not that she can guarantee anything could be done.

We have another endowment finishing next December!

Await your response.

anselld

If you can persuade Newcastle to tell Prudential that they do not require the proceeds then Newcastle will send you the money and you can save it till after the penalty period.

Of course, it depends on the relative interest rates and penalties if this is worth doing.

themull1

have you checked the paperwork?