Mortgage and endowment date different

tricia1900

After making additional payments on my mortgage I thought I had overcome the "endowment" problems. Ha! My mortgage is due to be paid off 7 July and having looked at the paperwork this weekend I have realised that the endowment does not mature until 9th. Has anyone come across this issue? Can't see the building society giving me extra time without some kind of pemalty. Also does the insurance company pay the endowment money to me or to the building society? Feeling a bit deflated and would be glad of any advice.

opinions4u

2 days is neither here or there. Nothing to worry about.

Do you have he original policy or is it held by the lender. Whoever holds the policy gets the money paid to them.

tricia1900

Thanks. That's reassuring. I have the policy but it is "a copy policy for information only" so presume the bulding society has the original? Will make some phone calls this week to try and clarify it all.

Thrugelmir

What matters is how quickly the mortgage is discharged. As interest will run until the debt is settled.

dunstonh

Can't see the building society giving me extra time without some kind of pemalty.

Most will give an automatic 12 months and some will keep rolling it for up to 5 years.

It is actually very rare for the endowment to mature on the same day.

opinions4u

tricia1900 wrote: »

Thanks. That's reassuring. I have the policy but it is "a copy policy for information only" so presume the bulding society has the original? Will make some phone calls this week to try and clarify it all.

It sounds like the policy is assigned to the lender then. Likely if the mortgage was taken out early 1990s or earlier.

That means the maturity proceeds should be sent direct to the lender.

tricia1900

Yes the mortgage was taken out in 1986 so that makes sense. I don't mind paying interest until it's sorted but didn't want to incur any penalties. You've all out my mind at rest about that now though. :j I'm aware that this is not the worst problem to have in this day and age so thanks for all the replies. The advice is very much appreciated .