mortgage predicament

componaught

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

McKneff

Do you mean your endowment payout wont meet the payment at the end.

Either save up frantically now or borrow when its needed,

GMS

Switch to repayment, and if necessary look to extend the term.

Do you have an endownment but it is short or none at all?

jimjames

componaught wrote: »

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?

componaught

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

TrickyDicky101

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.

componaught

outstanding balance about £15,000, savings £3,000 no endownment, income £28,000, house value £120,000, age 62

TrickyDicky101

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.