moving home

reeceglen

Hi all
I've currently got an endowment mortgage which surprise surprise is going to shortfall :mad: What i'm thinking is because i'm hoping to move home soon i will be entering into a new mortgage. So the shortfall will not effect me or am i wrong with what i'm thinking.

silvercar

Currently your paying interest only on the mortgage with the endowment failing to repay the whole of the loan at the end of the term. When you move you will presumably take out a new mortgage and can make alternative arrangements to pay off the new mortgage (repayment mortgage, new policies etc).

So your right in thinking that you can use the opportunity of moving home to reschedule the mortgage and not leave you with a problem in years to come.

The endowment showing a shortfall means that you will have to take a lower amount into your calculations for clearing the mortgage at the end of the term than you would have otherwise had to do. A part repayment and part interest only mortgage may be the way forward with the interest only part low enough to be covered by the estimated maturity value of your policy.

reeceglen

Thanks silvercar for your reply.