Endowment Policy

[lucy.f]

Hello all

I've had a few conversations now and we're feeling happier about the way forward. We have a telephone chat with Melanie's office tomorrow so I'm really nervous about that but also excited about getting things moving!

We have an endowment policy and general consensus has been we can surrender this without too many problems but still maintain an interest only mortgage whilst in the IVA. This means we have £12K to immediately put into the pot and also another £150 per month to tempt the creditors with...! We've received confirmation on value today from AXA and the blurb goes on about 'if' the plan is assigned the documents will be with a bank, society etc. as security for loan. Well we have our plan/documents in full and they've never been with anyone else. AXA do know we originally took our policy as endowment vehicle for mortgage but Northern Rock never asked to see anything and all they ever say is 'its your responsibility to make sure when the loan ends you can repay' etc.

The form asks for signature of assignee together with company stamp. Do I need then to send this to Northern Rock even though we hold all our own documents, plans etc or do I just skip this bit?

We're not going to do anything about surrendering until we've had our first detailed chat with Melanie's office, I just wondered if any experts out there think this is standard blurb?

Still really nervous and almost wishing the next few weeks away...!

Thanks everyone
Lucy

[jamesfalla]

Hi Lucy

It sounds as though your endowment is not assigned to Northern Rock. However, to be sure, I would call AXA and ask them about the part of the form that asks for signature of assignee together with company stamp.

Keep positive. You are now on the right road

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[CoverItAll]

Hi Lucy,

Before you surrender the endowment do consider that it has two roles - to build up a fund to pay off the mortgage AND to pay off the mortgage if you die.

If life cover is important in your present position, term assurance can provide this for very little outlay.

John Tegg
Accident and Sickness cover that pays for up to 60 months for Clients within IVA's.
Tel: 0845 673 9999
e-mail: quotemeplease@asu4iva.co.uk
www.asu4iva.co.uk

[Adam Davies]

Lucy.f
Has anyone mentioned to you about selling the policy to a company that specialises in this.You generally get a higher figure than if you simply surrender it.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[sps]

Hi Lucy
To add to Andy's post above my husband and myself have looked into selling endowment policies for a better price than surrendering them. Try the Association of policy Market Makers on telephone number 0845 011 9403 and they will circulate your details to the companies who buy these policies to get the best price. I also phoned round some companys I found on the internet under selling endowment policys - well worth doing. However they will only purchase ( if I remember rightly ) with profits policys not index linked ones. Hope this helps.
Sue