Endowment maturring

colin13

I have an endowment maturing soon,,I have 2 diffrent endowments to add up to value of the 2nd house i bought,when I get this can I stick it in a bank account to gain intrest ,,or do I need to pay it to morgage,,and if I do wwill I get charged for making a large payment to my morgage,,ps Im on benefits,,so if I put money in bank would that affect my benefits ? so many questions,, when I say 2nd house I mean the 2nd house that I have bought,,I dont have 2 houses

dimbo61

Well Colin if you have more than £16,000 in savings you will lose benefits ( please check with the nice benefits people) but if you use an endowment to pay off some or all of the mortgage thats OK ie the benefits people cant touch it as it was set up to clear the mortgage and thats what you should do with the money ( Mortgage Free)
This will save the tax paper/benefits people from paying the interest on your mortgage but you will be mortgage free.

dimbo61

You will also find that the endowment maybe assigned to the mortgage so you can have the endowment company pay the money straight to your lender and not have it pass through your bank account!

dunstonh

The endowment is exempt from any means test and on maturity, as long as you use it to clear the mortgage, it will not be included in any means test, even if it passes through your bank account. If you dont use it to clear the mortgage though, it can be included in the means test.

colin13

ty for all the replies guys,,very helpfull