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Topic starter
02/12/2011 11:11 am
I have been reading through the posts for a couple of weeks and think the site is great and very informative.
I have around £35k of debt. I have a house with a value of around £110k and a mortgage of around £100k. I have a secured loan for about £40k. I also have an endowment policy which is definately assigned to the bank for the mortgage.
If I was to hand the keys back to the house and the bank sold the house would this release the policy back to me.
I am unsure of my options, but was looking at using the policy to pay some of the credit card debts.
Any help or advice would be appreciated.
Galf
02/12/2011 11:20 am
Welcome to the trust deed forum galf and thank you for your kind words.
Is there a reason why you are considering handing the keys back rather than selling your home yourself?
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02/12/2011 11:37 am
Hi galf
Interesting question.
There is an assumption that the property sells and the bank are paid in full. They therefore no longer require the 'assigned policy' as they have been settled and have no claim on this.
However (there's always a however!) There is a thing in Scotls law called The Law of Catholic and Secondary Securities. Very simply from my understanding is that the secured loan company do not have a valid assignation on the policy, however when the policy is released by the 1st mortgage company, the secured creditors in terms of the above law can claim title to the policy/proceeds.
Not sure if this help or just complicates matters more.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
05/12/2011 11:19 am
Essentially I'm afraid it means that you are only likely to get any free proceeds from the endowment policy once the mortgage and secured loans are both paid off, galf.
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