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UK Tax on loan from Life Insurance policy

Back in 2007 I purchased a Life Insurance Policy from Dubai which is called Participating Endowment Assurance Policy. The term on the policy is 15 years i.e. at the end of 15 years I will receive sum assured with bonus. In the same year I moved to the UK and all premiums have been paid from my UK salary (after taxes). All premiums have been paid at the moment. However HMRC is not aware of this overseas insurance till date. I have been living in the UK since 2007 and currently I am a British citizen (since 1 year). I intent to apply loan on the above mentioned policy to purchase a house in the UK. The insurance company has confirmed that they can pay the loan amount in GBP via Demand Draft or telax transfer. Questions: – Do I have to inform HMRC about the policy (in advance before the loan amount appears in my UK account)? – DO I have to pay any taxes on the loan amount received? – Do I have to pay the taxes later (i.e. end of 15 years) when I receive the sum assured with Bonus? – Will my mortgage application turned down since the house deposit will partially include this loan amount from my policy? (Note: The principle amount including the interest will be paid by my mum based in India as she owns me some money from a personal loan.Therefore I am not obliged make any repayments from UK to Dubai). Look forward to some key input if possible. Rgds,

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