What happens at the end?

Dumyat

We're coming to the finishing post :j

I have overpaid for years now, but the remainder of the mortgage will be cleared by two endowment policies (even with the worse case scenario predictions there should be an excess). One pays in November, and one next June.

What I want to know is when the November endowment pays out, do we get the cash or does it go straight to the lender? And next June what happens then if there is an excess?




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Angela_D_3

I believe it comes to you and there are advantages to leaving a pound on the mortgage, ie they have to keep hold of the deeds for you where as you'd have to pay somebody else to keep them if you had no mortgage at all.

Well done, I cannot imagine how great that must feel !

McKneff

The cheque will come to you and then you pay the mortgage off.

Then you go out side the Lenders office, and punch the air.:j:j:j

As for the £1 business, I didnt want that, I wanted to be completely debt free. The actual paper deeds mean nothing, the deeds are electronically stored anyway, I have mine at home.

Good for you, its a great feeling not owing anyone anything.

Dumyat

It is, so near and yet so far yet.
We're the first of all our friends/family to reach the finish post, and I just don't know how the process works.

Its probably a bit early to wait on the post man then lol

The first endowment which pays in November is the one which has performed the poorest, so I will be tenterhooks waiting to hear what its going to pay. We're hoping at the end to have enough excess to pay for a new garage, so fingers crossed.

Bettie

Dumyat wrote: »

We're coming to the finishing post :j

I have overpaid for years now, but the remainder of the mortgage will be cleared by two endowment policies (even with the worse case scenario predictions there should be an excess). One pays in November, and one next June.

What I want to know is when the November endowment pays out, do we get the cash or does it go straight to the lender? And next June what happens then if there is an excess?

With mine the lender had a charge on the property, as is the usual case. When the endowment pays - because it is their guarantee of payment, it goes to the lender. The lender then sends the excess, if any to you. If you have paid up in full before the endowment pays out then you can get the building society to send them a letter to say they have no further interest in the policy and in that case the endowment would be sent directly to you.

LilacPixie

I'm a bit away from that but with my parents the lender had fnancial interest oted on the endowment policy, around 6 months before maturity the endowment comany wrote to my parents asking where to send funds, either direct to lender or to them. My parents opted for funds to go to the lender. Lender then sent on the small excess with a little bit of prodding.

Dumyat

Just the update. Letter has arrived with an estimate of the pay out, which is better than we hoped. They need a deed of assignment from HBOS so all paper work is now on their desk and all of the money will go to HBOS. And after 25 years of paying in money the endowment company now want me to prove who I am in case I am money laundering.

whizzing

Did you ever think of cashing it in or selling it in the last couple of years incase there was a fall in its value?

lamby021

Can anyone tell me if your mortgage lender near the end contacts you to let you know if you have any extra fees to pay at the end. We are about 8 months away from paying it off with Santander and just wondered if anyone had come across any hidden charges etc. Also somehow I already have the deeds to the house as the solicitor sent them to me when I pirchased it over 10 years ago so I presume there will be no fee for releasing these since they don't have them.

Bettie

I can't say what Santander might charge, if anything. I was with Nationwide and they never charged me for anything they did at the end of the mortgage. There was no release fee for the deeds.