Endowment has matured, will I get the money?

bill55bill

23 years ago I defaulted on a mortgage. The mortgage was jointly taken out with my then girlfriend. A Mortgage Guarantee policy was taken out and paid by us as a condition of the mortgage application being accepted. We split up, went our separate ways and the flat was repossessed.

For four years we paid into an endowment policy and then walked away from this too.

I've just been traced by the endowment company who have informed me that I'm entitled to a half share of the policy value, now that it has matured. My share would be £3000, which was a nice surprise.

The endowment was assigned to the bank with whom we had the mortgage and the endowment company have written to them asking them to confirm they have no claim on it.

Am I right in assuming that the mortgage losses would have been paid to the bank by the company who I paid the Mortgage Guarantee policy to and that therefore the bank would have no claim on my endowment proceeds?

Obviously the debt on the mortgage is now time barred and am hoping this applies to any claim on the endowment too!

Thanks.

opinions4u

Legally, the insurer who covered the banks losses could have pursued you for what they paid out.

A likely outcome here is that the bank won't be able to trace any debt or interest in the property.

As such, your toughest challenge is most likely to be making sure you don't end up with a cheque in joint names.

bill55bill

Thank you for your reply, luckily they have already told me the option is to split the proceeds or pay into a joint account so I should be ok, fingers crossed!

holly_hobby

Mge shortfall is only lawfully pursuable, by either the lender or MIG insurer, for a period of upto 12 yrs from the event - so given the time that has elapsed, you should receive the endowment proceeds without issue.

Hope this helps

Holly

bill55bill

Thanks Holly