We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

mortgage predicament

componaught
componaught Posts: 5 Forumite
edited 2 November 2010 at 9:34PM in Mortgages & endowments
Hi there
My mortgage has about 3 years to run and i have not got the endownment money to pay the end balance off, i am on interest only at the moment whats the best way of resolving my pridicament

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Do you mean your endowment payout wont meet the payment at the end.

    Either save up frantically now or borrow when its needed,
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Switch to repayment, and if necessary look to extend the term.

    Do you have an endownment but it is short or none at all?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • jimjames
    jimjames Posts: 18,043 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Hi there
    My mortgage has about 3 years to run and i have not got the endownment money to pay the end balance off, i am on interest only at the moment whats the best way of resolving my pridicament
    Have the endowment company contacted you to let you know that it won't pay it off or have you cancelled the endowment so no repayment vehicle is in place now?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • had to settle with a mis sold policy claim the endownment was never going to make the final payment even if i had kept paying so i had the money they offerd and run but had to use the money due to an accident and being off work
  • Ok so what's your outstanding mortgage balance, what's the current value of any savings you have (including the value of the endowment if it still exists), your current income, current house value and your age.
  • outstanding balance about £15,000, savings £3,000 no endownment, income £28,000, house value £120,000, age 62
  • TrickyDicky101
    TrickyDicky101 Posts: 3,525 Forumite
    Part of the Furniture 1,000 Posts
    edited 3 November 2010 at 2:06PM
    Ok so given there is 3 years left to run and that your current mortgage rate is 4% nominal pa (this is a complete guess, but given limited time to maturity, increases - or decreases - in your mortgage rate don't significantly affect the monthly repayments required) then you need to be paying total (ie interest + capital) repayments of approx £443 per month to clear the balance by the maturity of the mortgage. How feasible is this for you? If it isn't feasible, how much can you contribute to the balance each month?

    I take it by the maturity of the mortgage yyou will be 65 and will retire? Which could well result in a reduction of your annual income. This might restrict your ability to raise traditional finance (eg remortgage, personal loan) so you might have to consider forms of equity release like a lifetime mortgage or a reversion plan.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347.2K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.8K Spending & Discounts
  • 239.4K Work, Benefits & Business
  • 615.3K Mortgages, Homes & Bills
  • 175.1K Life & Family
  • 252.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.