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Endownment loans
djwilc
Posts: 4 Newbie
We took out a loan on our endownment policy 10 years ago.(stupid I know) We were told at the time the loan amount would be deducted off the bonus at the end of the term huh thats not going to happen now. It is due to end in November and the loan will become payable has anyone else done this? Is there anything we can do?
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Comments
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Your post isn't clear. Can you clarify?
Did you take a policy loan or a separate loan?
Are you querying why you have to repay that loan?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Using the policy I suppose as equity we borrowed against it in 1997 at that time it was on track and it was thought by ourselves and the advisor we spoke to that we could be looking forward to a substantial bonus. I cannot remember who gave us the idea of doing this and people I have asked since have been a little unclear as to what I mean. Basically at the end of November our Endownment will mature at that time they will take out from the payment the amount borrowed in 1997. This should have been coming out of the bonus but of course there is,nt one now My question is would this be a case of mis selling or just tough luck?!0
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My question is would this be a case of mis selling or just tough luck?!
Its a policy loan then that we are talking about.
I cannot see how it can be classed as mis-selling as you borrowed money and whatever way you borrow money, it has to be repaid. Investment returns are not something you can complain about so you have no scope there either.
The last thing is that a policy loan on a policy in force would likely have no record of any advice given. Especially if a tied agent was used as most of them werent allowed to give advice but information only in this area. The decision would be yours. Plus the terms would have been disclosed before you signed.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
How do the figures look?
Surrender value of endowment
Projected maturity value
Provider
Amount owed on loan and interest rate
Amount owed on mortgage and interest rate
Maturity date of mortgage (same as endowment?)Trying to keep it simple...
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