Endowment Mortgage

davyp1982

Hi, Just wondering if anyone can help, I took out an endowment mortgage in 1989 which has matured. However there is no sign of an endowment policy, there is 2 whole of life policies one in my name and the other in my ex-wifes name.

I received nothing from the bank re maturity of policy and when I contacted them they proceeded to cash in the whole of life policies for €4k. These policies have no maturity date but only pay out on death the sum for this €180k.

Has anyone else experienced anything like this?

Thanks in advance for any help you can give me.

Pablo Sanchez

Hi Davy,

More information is needed, if the policy is purely protection then have you been making a seperate payment to the bank for your mortgage for the last 24 years?

broker2008

Are they unit linked policies that were used for an endowment mortgage? As PAblo says more info needed. Sounds like a unit linked whole of life policy that is open ended and may have been assigned to the bank as lender. €180,000 sounds like a lot of cover for a maturing endowment policy. If the policy has been encashed, most likely that life cover is gone. This is classic example of getting advice before someone misunderstands your needs and does something that you don't want.

davyp1982

Thanks for your response. Policy is purely protection. I have been paying an interest only mortgage and also I was paying a normal capital and interest loan which has finished this year.

I have written a letter of complaint to the bank regarding encashment of policy which was assigned to the bank, I have also complained regarding lack of correspondence.

I have requested under data protection all documents containing my name.

If you need any further information let me know, I am not sure what else I can do as it was a long time ago and I can't really remember all of the details.

broker2008

Interesting. Looks as if the bank decided to cash in the policy and put proceeds against outstanding loan that you have which they are entitled to do.

davyp1982

They did, but there is no record of an endowment policy to pay the mortgage, I know they all fell short of the full amount but there is no policy. If these life policies where supposed to clear the mortgage than they were miss sold and I should have a case?

broker2008

No dont think so. Loads of previous threads in this forum if I recall. Would you had an endowment mortgage in 1989 and switched at some stage to annuity and ran 2 policies side by side. Would you have decided to keep this policy as a savings policy with life cover, ? Small value could back this up. If you are in 50's the cost of life cover would have dug well into the value of the fund though. A quick chat with a mortgage broker with your policies might give you a quick answer.