My mortgage is part repayment part endowment.The endowment element will mature during the course of iva.Will the money be used to pay the mortgage or will it go into iva.
This should've been established at the beginning of your IVA. You'll need to check your proposal. If the endowment is not linked to the mortgage (many of them are not), then it's usual for the endowment to be realised for the benefit of your creditors. If it is linked, then the liklehood is that it will just go to pay that part of your mortage. You'll need to check in your proposal to see whether it's been excluded.
Hi Alfie - speak to your IP asap to confirm what the expectation is so you are prepared. Something as important as this should have been made clear to you at the beginning. Let us know what they say.
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The only mention of mortgage was equity release in month 54.Endowment matures July 2013.repayment element of mortgage due Feb 2014.Should i settle that payment as soon as endowment matures.There does not appear to be any early payment penalty and it means there will be equity in the property.
Did they know you had endowments? I had two which were planned for my mortgage one (the biggest) was linked and will be used to reduce mortgage but the other will go to IVA, at least half will as my husband is not in IVA. This was clear before IVA was arranged.
I know I am a good person, I just need to start believing it
Was the endowment policy actually disclosed as an asset in the IVA, as presumably the monthly endowment payments were included as part of your monthly expenditure?
The original mortgage was repayment only (covered by endowment).When informed that there would be a shortfall we changed to part repayment but retained smaller amount of endowment.On I/E added cost to mortgage payment ie £870+ £53= £972,but did not itemise the two.
If you moved mortgage companies since 1988 when you took out your first mortgage it is unlikely that the new company would have taken an assigment against the policy. This should have all been made clear when the IVA was first proposed and the endowment listed as an excluded asset if it is to be used to redeem the mortgage.
I can only assume the IP knew about the endowment and excluded it as we have often done in the past especially when the clients would struggle to obtain replacement life cover due to age or previous illness. If this is the case you can reduce the mortgage on maturity although your payments to the IVA should increase by the monthly savings from the mortgage payment and endowment cessation.
You will probably have equity at this time which can be addressed in the normal way. If you have any doubts speak to your IP for clarification.
Thanks for all your replies.4th year revue in progress,will wait for response and then try and deal with any issues.Then throw myself to the mercy of the forum.
