With an endownment mortgage the policies are linked to the mortgage. So when it comes to financial settlements why are they listed as seperate assets. For the calculations do they take the surrender value of the policies only along with the equity left in the house after debt and moving costs cleared. Or is it assumed the endownments will be used to clear the mortgage and only the equity left in the house after debt and selling costs.
What happened to a someone I know is that the endowment and the mortgage were unlinked. He walked away with the endowment. She got a larger share of the equity in the house and took on a repayment mortgage for the remainder and kept the house.