Cashing in an endowment policy

toadyfrog

I have a house that is shared between myself and an ex-partner. The mortgage is £50,000 and the house is worth in the region of £240,000 now. Both myself and ex are now struggling moneywise and the house will need to be sold, with a good profit for both of us. He has a new partner and a new mortgage on another property.

We have an endowment policy set up on this property to pay off the mortgage, which as of yesterday has a surrender value of approx £16,000.

My question is can we surrender/sell this policy before the house is sold to help us both out of our money problems, and do small repair jobs on the property to make it in better condition. Obviously the value of the house will cover what is owed on the house.

Hope that makes sense.

Debt_Free_Chick

You'll need to contact your mortgage lender - they might want you to switch to a repayment mortgage (currently, you have interest-only, I would guess), but they might not insist on this if the property is on the market. Or going on soon.

They need to agree to release their interest in the policy.