Endownment Policy and JSA

wazza

My mortgage endowment policy is due to mature this Sept. Few years ago i had remortgaged. The current mortgage will not finish this Sept. as the original one would have. It will finish next Feb.

I am now on JSA.

What will happen when the endowment policy matures?

Is it paid straight into the mortgage account?

If it is paid to me can i pay it into the mortgage account or have to class it as savings? I read something about capital deprivation where one cannot use the money to buy an expensive car etc while claiming benefits etc

Thanks

castle96

anyone know ? Same situation myself shortly

HappyMJ

If you use it as intended to pay for part of the mortgage then you will not be affected.

castle96

if you have already cleared the mortgage though, it would be deemed as 'capital', to live on ?

HappyMJ

castle96 wrote: »

if you have already cleared the mortgage though, it would be deemed as 'capital', to live on ?

The OP said remortgage and you said that yours was the same situation. If you have no mortgage to pay off at all with the endowment (it doesn't matter if you have remortgaged elsewhere) then yes it will be capital. i.e if you took the policy out with halifax but now owe lloyds it can still be used to pay the mortgage with them instead and you won't affect by deprivation of capital.

What's your exact situation? How much endowment due? Any debts? Any other assets that are counted?