Mortgage Endowment

benfield

We bought an Endowment policy from Guardian Royal Exchange (Freedom for Homebuyers) alongside a mortgage from Abbey National in 1992. We sold the house in 1998 and the mortgage was cleared. The endowment policy ceased at the same time and we expected a refund of monies paid into the endowment, as had been promised when we took out the policy, in the event of moving house. We subsequently requested refund but received nothing then in 2007 I wrote yet again stating that we'd still not received any refund and received a very brief letter confirming that the policy ceased in 1998 but as they only held records for seven years they could do nothing further to help. Is there anything I can do about this? The value of payments into the policy for the 6 years it was running was £23,500 approx.

Thrugelmir

Where is the policy document?

dunstonh

Is there anything I can do about this?

If the policy ceased in 1998 that means it had no value at that time. It was quite normal for endowments not to build a surrender value for the first 5-10 years (typically from around year 4/5 onwards but some were later).

For it to have no value in 1998, that either means it paid out at the time or more likely it lapsed with no value.

With the policy being long gone, it is normal for the documentation relating to it to be destroyed after 6 years. However, if you have your policy document, it will probably tell you the surrender terms for the early years.

benfield

Thank you for your comments.
Yes, I still have the policy documents which show that there is a surrender value. the last annual statement shows that the then current surrender value as £15,143. It also states that we should receive either a paid-up policy or cash surrender value.
I still have our bank statements from that period and can find no payment for around that value from GRE having been received (and I think either of us would remember such a receipt). Neither can I find any communication from GRE suggesting a paid up policy instead.

dunstonh

benfield wrote: »

Thank you for your comments.
Yes, I still have the policy documents which show that there is a surrender value. the last annual statement shows that the then current surrender value as £15,143. It also states that we should receive either a paid-up policy or cash surrender value.
I still have our bank statements from that period and can find no payment for around that value from GRE having been received (and I think either of us would remember such a receipt). Neither can I find any communication from GRE suggesting a paid up policy instead.

Ok, so if GRE cannot answer you satisfactorily then you make a complaint.

It would be worth giving them another go first in case the first person made an error in their search. Then if they cant find it or give you the same response then ask to be put through to their complaints team. However, documentary evidence is king. If its gone then there isnt much that can be done with that. You would have to persuade them that someone with £15k would wait 13 years to get the money.

Thrugelmir

benfield wrote: »

Yes, I still have the policy documents which show that there is a surrender value. the last annual statement shows that the then current surrender value as £15,143.

The policy document would have had to be surrendered in order to effect a cash in of the policy. While making a policy paid up would not. As ceasing to make contributions would cause the policy to default to this status.

The actual policy document itself will not state a surrender value.

Is it possible that the funds were used to redeem the mortgage balance when the policy was surrendered.

magpiecottage

Thrugelmir wrote: »

The policy document would have had to be surrendered in order to effect a cash in of the policy. While making a policy paid up would not.

Not necessarily. If the policy was mislaid it could be done with a lost policy declaration.

Thrugelmir

magpiecottage wrote: »

Not necessarily. If the policy was mislaid it could be done with a lost policy declaration.

Ah yes. Overlooked this.

brewerdave

Wouldn't the endowment have been assigned to Abbey National by GRE?? If so, wouldn't the proceeds have been used towards the mortgage repayment??

dunstonh

brewerdave wrote: »

Wouldn't the endowment have been assigned to Abbey National by GRE?? If so, wouldn't the proceeds have been used towards the mortgage repayment??

There is a very good chance that a 1992 endowment would have been assigned. It was around 1995 onwards that assignments started to cease being required.

benfield

Thank you to everyone who has contributed to my original question. I shall make contact with GRE again and see what comes of it. I have never signed anything for a lost policy because I have never been asked for or surrendered the policy. I had simply asked GRE at the time how we could get the surrender value and it was a long drawn out process to wait for a response then contact them again and so on as the time slipped by until 2007 when I made the last attempt and was told that the documents had been destroyed because the time delay. It may well be the case that the policy was assigned to Abbey National as mentioned by one contributor and if this was the case I'd have expected that to be recorded in the breakdown of the settlement figure for the mortgage. However, I will see what GRE can reveal. I much appreciate each comment you've made, thank you all.