Provident Mutual

kevlj

Hi there,
I hope someone with a good memory can help me! I have an ex Prov Mutual Flexible Mortage Plan now managed by Aviva. The original policy documents state that the surrender penalty (to be incurred when the endowment mortgage comes to an end) is equivalent to "an amount equal to thirty percent of all premiums paid up to the First Ordinary Unit Allocation Date but not paid"
My mortgage finished last month but I am in dispute about the amount I am being penalised for surrendering the policy.
Does anyone know WHEN the First Ordinary Unit Allocation Date was after policy inception? No-one from Aviva seems to be able to answer this and the policy documents don't state this.
Any advice would be great. Thanks

kingstreet

Why are you surrendering?

What is the actual maturity date?

kevlj

Hi there,
Sorry for the delay responding - been away on work. When I bought the policy it was calleda Prov Mutual Flexible Mortgage Plan, and as its name implies, is designed to be flixible and be surrendered when the mortgage term is through (25 years in my case) This is clearly stated in the policy documentation. Exactly what I wanted. The endowment mortgage finished 22.4.2013 after 25 years, but Aviva now say its called a Whole of life policy and has a end date of my 80th birthday!... Why would I ever take out a policy that finished 26 years AFTER my mortgage finished Its whole and primary intention was to redeem the amount owing to the Building Society, which is still outstanding. The fund is worth about 17K2 and they are trying to say there is a 1K2 surrender penalty, even though the original policy documentation states that, quote "The Early Termination Penalty is an amount equal to thirty percent of all Premiums otherwise due up to the First Ordinary Unit Allocation Date, but not paid" This is why I need to know when this date is.
Regards

Thrugelmir

An old thread on a similar topic.

https://forums.moneysavingexpert.com/discussion/comment/40477768#Comment_40477768

TrickyDicky101

Do you have any documentation from the inception of the policy that you can refer to? Traditional Whole of Life policies iirc are meant to pay out on death, so why one would use one to repay a mortgage doesn't make a lot of sense to me.