Mortgages/Endowments

cazarol

I have a bit of a question which I am probably quite confused with myself. I have a mortgage which should end in June 2011. The mortgage is made up of 4 endowments and a repayment element. I know that the endowments will not meet the required amount (not sure by how much) but I dont know what happens at the completion date. Does the endowment automatically finish and the company send me a cheque for the amount it has made or do they send it to the mortgage company or do I get the option to continue paying into those endowments for them to hopefully grow.....
Questions, questions, I know !! Maybe they cant be answered at the moment, I dont know but any thoughts/ideas wouldreally be appreciated. Many Thanks in advance

happybroker

it depends, if the endowment plans are assigned to the mortgage lender they will be given the opportunity to claim the proceeds directly. If they aren't they will be sent straight to you.

you will be contacted before then anyway.

If there is to be a shortfall on the mortgage then this will become due in June 2011 if that is the end of the term of the mortgage so you really could do with establishing what the shortfall is likely to be and how you propose to repay it. This should be done now rather than waiting.