Lost Endowment

vivienneh_2

I'm trying to help my mum find her endowment or at least what happened to it. My mum is having some memory issues and just can't remember. The mortgage is due to expire next year with a significant shortfall as she's been on interest only payments for a long time. Looking back at the paperwork it appears she took one out with Northern Rock but from there it disappeared. Mum doesn't remember when she stopped paying into it. The mortgage has moved company a few times and I've contacted the most recent companies but no one knows anything about it. Any advice? I did try contacting the people who look after things for Northern Rock but was told 'its probably in a box somewhere' and they were of no further help. 

MWT

Would the policy have been written in her name only, or is it possible it already paid out on the death of a spouse?

Can you tell from the mortgage if there has ever been a significant capital repayment, or has it always been interest only and no change in the capital amount outstanding?

vivienneh_2

MWT said:

Would the policy have been written in her name only, or is it possible it already paid out on the death of a spouse?

Can you tell from the mortgage if there has ever been a significant capital repayment, or has it always been interest only and no change in the capital amount outstanding?

Thank you for your reply. 

It would only ever have been in my mum's name. I've just checked the mortgage documents and there was never a significant repayment, only ever the interest on it really. 

Thrugelmir

vivienneh_2 said:

Mum doesn't remember when she stopped paying into it.  

That's the key.  What happened at the time is critical. Otherwise you are simply chasing shadows. What documentation have you located with regards to the policy itself? 

dunstonh

Looking back at the paperwork it appears she took one out with Northern Rock but from there it disappeared.

Northern Rock was a lender. Not an insurer. It didn't have an endowment policy.

The mortgage has moved company a few times and I've contacted the most recent companies but no one knows anything about it. Any advice?

The lenders wouldn't know as the endowment has nothing to do with them.

You could ask her bank for copy statements from the year she started the mortgage and look for a payment to an insurer.

MWT

vivienneh_2 said:

It would only ever have been in my mum's name. I've just checked the mortgage documents and there was never a significant repayment, only ever the interest on it really. 

Then you are left with surrendered, lapsed or never actually started in the first place.

The year the mortgage started might give us some clues as to what was possible at the time and as dunstonh suggests, finding a first payment would be a great start as you can then start looking for a last payment, but depending on how many years ago the mortgage started it may take a while to get that information if she has not kept copies of her own statements...

user1977

dunstonh said:

The lenders wouldn't know as the endowment has nothing to do with them

It may well have been assigned to them at the time, depends what era we're talking about.

vivienneh_2

Thank you for all of the really useful suggestions, its really appreciated. The mortgage was taken out in the late 1980s, early 1990s I believe. 

dunstonh

It may well have been assigned to them at the time, depends what era we're talking about.

The period is typical for assignment but you would be hard pushed to find a lender today that knows the policy was assigned, even if it was still around.

However, if it was late 80s or very early 90s then that predates the period when building societies retailed endowments themselves.  They would typically get in a local IFA/broker to do it.

Another thing to consider is that era was typically a maximum of 25 years on the mortgage.  So, the original mortgage and potential endowment would have matured some years ago had it still existed.  This leads me to think that there may have been money issues in the past.    The mortgage should be long finished but it's still going.  So, it is possible.that when the mortgage was extended and more borrowed, the endowment was cashed in.  Or cashed in first and didn't provide enough and then the mortgage was increased/extended after.  Maybe throw that scenario at your mum and see if it jogs her memory.