"Am I legally obliged to pay this off? "
Yes.
"Am I legally obliged to pay this off? "
Yes. But that's not the question you actually want an answer to. You want to know what would happen if the bank found out.
It was a condition of getting the mortgage that the policy would be assigned.
I am amazed that the funds issued when the policy had not been assigned.
You've chosen not to discharge the mortgage entirely. Presumably you are continuing to discharge the monthly repayments.
So long as you continue to do so, I suspect the bank won't care.
mf
I am amazed that the funds issued when the policy had not been assigned.
mf
Why wouldn't you use the proceeds of the policy to pay off the mortgage?
You would save yourself a fortune in the long-term.
Just curious MF, as the policy was not assigned do the bank have the legal right to insist on it being paid to them. Surely the whole point of the assignment is it gives the bank the legal right to get the proceeds of the policy. And without it they don't have that right. Or would the clause in the contract mean the bank could actually do something about it. I suppose they could but they probably wouldn't, not in a case where the mortgage is being paid and it's a widow with children."Am I legally obliged to pay this off? "
Yes. But that's not the question you actually want an answer to. You want to know what would happen if the bank found out.
It was a condition of getting the mortgage that the policy would be assigned.
I am amazed that the funds issued when the policy had not been assigned.
You've chosen not to discharge the mortgage entirely. Presumably you are continuing to discharge the monthly repayments.
So long as you continue to do so, I suspect the bank won't care.
mf
I would have thought that the bank should have ensured that the condition was met before funds were drawn down, so it their problem if they didn't, so I wouldn't worry too much about the bank.It was a condition of getting the mortgage that the policy would be assigned.
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