Endownments maturing querie

v2kdj

Hi. Have 2 endownments maturing later this year and still have a balance owing on my mortgage. Could anyone tell me if I am able to recieve the maturing policies myself or do they have to be paid off the mortgage balance?
What I was hoping was to use the money as a deposit on a small property.
Many thanks.

Horseunderwater

The first thing I would ask you - Is your mortgage interest only or repayment because if it is interest only then you need some way to pay off the capital of your mortgage and that used to be the way it worked. If however you now have a repayment mortgage then you are paying the capital off already. So which is it? Answer that one and you should have the answer you need.

Froggitt

It also depends on whether the BS has an "interest" in the policy - if so the money is likely to be sent directly to them.

Also, if you use the money for a deposit on another property, how are you paying off the original mortgage?

kingstreet

As Froggitt asked, are the policies assigned to the lender?

If they are, the proceeds will be paid to them, unless the lender is prepared to reassign them to you.

If they do, you'll need an alternative plan to repay the mortgage at the end of the term.