Endowment Confusion

theshed

Hi, I asked this question on someone else's thread but thought it better to start a-fresh.
I had an endowment policy with MGM which was due to mature in July 2016, I received no notification and only recently found the paperwork.
I contacted MGM, to be told the business had been sold to Scottish Widows, they inform me that endowments where being managed by a company called Moorgate, The Mortgage Trust, from whom I await a response.
I am wondering should they have contacted me earlier, and given possible Brexit effects could I have lost money ?
Any advice greatly received.

AnotherJoe

Same answer as before, since stock markets on the whole are up since Brexit, that's unlikely, assuming compo was on your mind. Perhaps your worst case is, the amount was frozen in July and you haven't gained much from the post Brexit rise and you won't get compo from that either.

dunstonh

I am wondering should they have contacted me earlier, and given possible Brexit effects could I have lost money ?

You are invested up to maturity. Not beyond. After maturity, you normally get paid interest around base rate if it takes longer than 30 days.

Thrugelmir

Have they got your current address? Onus is on you to inform them.

theshed

Hi, sorry if anyone replied to my original post, I forgot to follow and lost it . DOH !
I am not expecting any compo' I just do not want to lose out.
They have my address as I am receiving statements from MGM.
I have contacted the current holders of the Endowment with my details, they replied quickly, which is good. But they asked for the same details I supplied, hopefully a glitch and not a taste of things to come.
I will post any updates and I feel another thread coming on about what to do with the money.

Thrugelmir

You should at least receive interest on the maturity value.

AnotherJoe

theshed wrote: »

Hi, sorry if anyone replied to my original post, I forgot to follow and lost it .

Just click on your user name then you can see your past posts.

theshed

Thanks for the advice.
Just been informed the paperwork for the Endowment was sent to the original Solicitor.
That was over 25 years ago, original Solicitor no longer there and company has been through a merger. I have spoke to their current office and they are looking into it.
I guess when the house was sold, over 15 years ago, I should have informed MGM.

theshed

Well, the money arrived in my account today. Just over £18,000 which was the maturity value in July.
No interest paid for the missing months, but if it was at base rate probably not worth the hassle.
Though the original lender did waive their fee for 'Letter of no Interest'.
I now have an interest only offset mortgage, so do I pay off a chunk or use the money to negotiate a new deal ?

AnotherJoe

Impossible to advise without knowing all the details. Mortage size, nterest rates, offset amount before and after the lump sum, time to go before the IO mortage needs to be paid off, plans to move, income, abilty to overpay, etc.

And that's before other considerations, for example, if you are a highr rate taxpayer you may be better puttting at least some of it into a pension.

theshed

Thanks Joe
So much to consider, which is why I so often put off financial decisions.
Offset interest rate is not so good in comparison to repayment but various payments involved in changing may wipe out possible gains.
We would also be committed to higher repayments whereas now we can make voluntary overpayments bringing the balance down.
Not a higher rate payer but, Pension is good idea.
For now money can stay in offset account...
Thanks