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Another Shortfall
Drac
Posts: 21 Forumite
Hi, I have been browsing for a couple of years now but feel my wife and I seriously need solid advice.
Both my wife and myself are not very clever when it comes to mortgages and understanding them.
I am 63yo male and registered disabled. I earn a very small income working from home (£200pm) and my wife is a 61yo midwife, working 2 nights per week.
We have a total of £77,000 over a few mortgages and 2 of which are Endowment mortgages. We have an estimated shortfall total of £17,500.
The mortgages finish in 2014 but the first endowment pays out around £10,450 in August 2010. The other ends in 2013 with an estimated pay out of £9.720.
We did manage to get a mis sold payment of £1,000 from Legal and General some years ago but th other one (Norwich Union), it was so long ago we didn't know who mis sold it and they refused to pay anything.
We can not afford financial advice and a few years ago we did visit our C&G Branch manager in bristol but all he did was to change some of the sub mortgages to repayment ones and he didn't seem to understand the endowment shortfall on the ones we still have and ignored them.
I am now getting worried as I can't see any options but as I say, I am ignorant to the world of mortgages etc
We have no problem paying the mortgage but this shortfall is getting closer and closer and it is now worrying me. I had a heart attack in 2007 and can do without further stress.
Because of our ages, we obviously can't switch to a repayment mortgage on the two accounts as I doubt we could afford the repayments. As it is, my wife has to work until she is 66 anyway.
I was looking at reversion mortgages, we have explained to the children that we might have to go this way and they accept this - they have their own properties anyway so are not expecting an inheritance.
Apologies for my first post being so long and hope it's not containing irrelevant information but likkewise, I hope the information needed for good advice is there. Oh by the way, I have written to C&G and asked advice too
Thank you
Are you still paying your endowment?
What is the estimated shortfall?
Estimated payout at present?
Remaining term of endowment?
What is your mortgage balance?
What is the remaining term of your mortgage?
What is the current interest rate on your mortgage product and how much longer does it have to run?
Both my wife and myself are not very clever when it comes to mortgages and understanding them.
I am 63yo male and registered disabled. I earn a very small income working from home (£200pm) and my wife is a 61yo midwife, working 2 nights per week.
We have a total of £77,000 over a few mortgages and 2 of which are Endowment mortgages. We have an estimated shortfall total of £17,500.
The mortgages finish in 2014 but the first endowment pays out around £10,450 in August 2010. The other ends in 2013 with an estimated pay out of £9.720.
We did manage to get a mis sold payment of £1,000 from Legal and General some years ago but th other one (Norwich Union), it was so long ago we didn't know who mis sold it and they refused to pay anything.
We can not afford financial advice and a few years ago we did visit our C&G Branch manager in bristol but all he did was to change some of the sub mortgages to repayment ones and he didn't seem to understand the endowment shortfall on the ones we still have and ignored them.
I am now getting worried as I can't see any options but as I say, I am ignorant to the world of mortgages etc
We have no problem paying the mortgage but this shortfall is getting closer and closer and it is now worrying me. I had a heart attack in 2007 and can do without further stress.
Because of our ages, we obviously can't switch to a repayment mortgage on the two accounts as I doubt we could afford the repayments. As it is, my wife has to work until she is 66 anyway.
I was looking at reversion mortgages, we have explained to the children that we might have to go this way and they accept this - they have their own properties anyway so are not expecting an inheritance.
Apologies for my first post being so long and hope it's not containing irrelevant information but likkewise, I hope the information needed for good advice is there. Oh by the way, I have written to C&G and asked advice too
Thank you
Are you still paying your endowment?
What is the estimated shortfall?
Estimated payout at present?
Remaining term of endowment?
What is your mortgage balance?
What is the remaining term of your mortgage?
What is the current interest rate on your mortgage product and how much longer does it have to run?
0
Comments
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You could make regular overpayments to your mortgage to bring down the capital that you owe and thus reduce the interest due.0
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The mortgages finish in 2014 but the first endowment pays out around £10,450 in August 2010. The other ends in 2013 with an estimated pay out of £9.720.
If the total shortfall is 17,500, then I assume the rest is covered by repayments.
When your endowments mature you can continue to pay the same amount to your mortgage, having used the maturing endowments to reduce the capital owed.
£10,450 at 5% (guessing your mortgage rate here) for 4 years would give you over £2000; £9720 at 5% for one year gives nearly £500. Compound interest increases these figures. You are still looking at a shortfall of £15000. To pay extra capital would be about £200 extra a month. COuld you afford that?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Post some info about the endowments
Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage
PLease lists the amounts and interest rate payable on each mortgage.Trying to keep it simple...
0 -
EdInvestor wrote: »Post some info about the endowments
Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts
Interest rate payable on mortgage
PLease lists the amounts and interest rate payable on each mortgage.
The endowments are needed to pay off £35,683.69 which finishes 08/2015
The repayment parts of the mortgage finish in 01/2016 and total £34,395
The current estimated value of the house at the moment is £140,000
1 - Legal & General
Guaranteeed Sum Assured ???
Declared Bonuses ???
Surrender Value ???
Target amount = £15,000
Monthly Premium = £25.25
Maturity Date = 05/10/2013
Maturity Forecasts = @ 4% £9,720...@ 6% £10,300...@8% £11,100 and
they assume it will be 6% growth each year
Interest Rate Payable on Mortgage = 5.79 until 02/2010
2 - Norwich Union
Guaranteeed Sum Assured ???
Declared Bonuses ???
Surrender Value ???
Target amount = £16,000
Current Value = £10,459
Monthly Premium = £25.16
Maturity Date = 05/07/2010
Maturity Forecasts = ???
Interest Rate Payable on Mortgage = 5.79 until 02/20100 -
PLease post all the figures when you have collected them.Trying to keep it simple...0
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EdInvestor wrote: »PLease post all the figures when you have collected them.
Sorry thats all the details we have - where there are ??? thats what we don't have on any of the documents in front of us - sorry0 -
You'll need to call up the providers for the additional and upodated details.Trying to keep it simple...0
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Updated info :
1 - Legal & General
Guaranteeed Sum Assured £4,590
Declared Bonuses £3139.30
Surrender Value £7,692 (not guaranteed??)
Target amount = £15,000
Monthly Premium = £25.25
Maturity Date = 05/10/2013
Maturity Forecasts = @ 4% £9,720...@ 6% £10,300...@8% £11,100 and
they assume it will be 6% growth each year
Interest Rate Payable on Mortgage = 5.79 until 02/2010
2 - Norwich Union
Guaranteeed Sum Assured £5,504
Declared Bonuses £4,955.30
Surrender Value £9,771.50
Target amount = £16,000
Current Value = £10,459
Monthly Premium = £25.16
Maturity Date = 05/07/2010
Maturity Forecasts = ???
Interest Rate Payable on Mortgage = 5.79 until 02/20100 -
l&g terminal bonus figures are declining dramatically...
i'm in the same boat as yyou
keep or surrender ??0 -
L&G terminal bonus rates are in freefall....
in the same boat as you.
keep or surrender ????0
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