Incredible Shortfall to redeem mortgage account

robbieroy

Hi Folks
My Endownment with L& G matured this month to pay off a small mortgage of £15000. The letter I received from the Woolwich said that £15045.10 had been received from L & G yet I have a shortfall of £4618.38
This seems an overly large shortfall on such a small mortgage.
Has anyone experienced anything similar and if so, what action did they take?
Any advice would be appreciated!
Thanks in anticipation
RR

maninthestreet

There isn't a shortfall in the endowment - it was planned to payout £15,000 at the end of it's term, and it's £45 over that figure. Where has the additional £4618.38 on the mortgage come from? Did you take out buildings insurance with the Woolwich for the property and allow premiums to be added to the mortgage?

robbieroy

Thanks for the quick reply MITS.
Insurance etc was all from separate companies and so it was just the straight mortgage redemption payment that I thought would pay off the mortgage in full.
L & G (ENdownment policy company) wrote to me saying the maturity value of policy was £15045.10
Redemption letter from Woolwich states that they have received £15045.10

Then the surprise shortfall summary of £4618.38 - there is no explanation as to why this should be the case.
Would it be worth heading off to my local branch of the Woolwich to seek advice?
It is a real mystery to me.
RR

Dan_1976

Have you been paying the mortgage in full?

robbieroy

Thanks to those who responded - I finally got to the bottom of this :j
I telephoned Wooliwch again this morning after an usuccessful conversation with them yesterday. I had a main mortgage of £15000 which the the L & G Endownment policy would have paid off in full since the maturity value of the policy was over £15000.
I also have a home improvement loan for £5000 and an endownment policy to cover that.

The person I spoke to on the telephone spotted that the £15045.10 received from L & G had been used to pay off the home improvement loan of £5000 and not the main loan for the mortgage of £15000, the balance of which must therefore have been paid to my main loan, hence there was a shortfall on my main mortgage.
It is now with the admin team at Woolwich who need to reverse the situation so the at the main mortgage is paid off.
Whew.
I will update you on the outcome of this.
RR

getmore4less

What were the rates on the two loans?

You want the one with the higher rate paying off first.

robbieroy

They are both at 4.99%, but IMO it would be best to pay off the larger on first.
RR