mortgage company rights to change mortgage from endowment to repayment

thomas..._6

Can anyone help? We paid our mortgage for approx 6 years when we fell in arrears with our mortgage payments. We had an endowment mortagage at the time. We went to court, but the judge posponned it as our figures didn't tally with mortgage company The judge told the mortgage company to return with the right figures or they will be liable for court costs. A couple of weeks later we received a letter saying they would not be returning to court. Our mortgage company then cancelled our endowment and changed our mortgage to repayment and kept the approx £600 return from the endowment policy for charges??? The question i want to know is whether the mortgage company were allowed to change our mortgage without our authority and whether they were allowed to keep the funds returned ? without our authority?

Thanks

maninthestreet

What do the written terms and conditions of your mortgage state in respect of this??

opinions4u

All the mortgage accounts I've dealt retain a right to compulsory surrender of an assigned endowment policy. They could choose to apply that right if the account was in arrears.

kept the approx £600 return from the endowment policy for charges???

While they can charge administration fees involved in the surrender, any surplus over and above those fees should be used to reduce the capital balance outstanding.

Of course if you had other charges related to your arrears etc ...

dunstonh

Our mortgage company then cancelled our endowment and changed our mortgage to repayment

It is not possible for a lender to cancel an endowment policy. It would need your consent

getmore4less

thomas... wrote: »

Can anyone help? We paid our mortgage for approx 6 years when we fell in arrears with our mortgage payments.
Thanks

At that point you open a lot of options for your lender that will be in your mortgage contract.

Time for a read of that.