Advice on selling an endowment policy?

spendleb

HGF wrote: »

You do need to tell them. They are letting you off with part of the monthly payment as your endowment is doing the work elswehere.

However if you remortgage for the full amount (eg less endowment) then you can do what you like with it.

Stuffed then as the whole point of this is to keep costs down, I can't afford to pay more on the mortgage each month especially with interest rate rises around the corner.

HGF

Don't give up yet - bet I can paint a better picture.

How much is your monthly mortgage and how much is the monthly premium for your endowment?
How much would you remortgage for and over how many years?

spendleb

CloudCuckooLand wrote: »

It is their £50k...

Useless at these things, so when my statement says my mortgage o/s is £180k, what part of this is the endowment? I just presumed that I owe £180k so sell the house and pay back £180k?

Also sure I recall he didn't use all the endowment in the calculations, think it was £30k used to allow for any shortfall.

spendleb

HGF wrote: »

Don't give up yet - bet I can paint a better picture.

How much is your monthly mortgage and how much is the monthly premium for your endowment?
How much would you remortgage for and over how many years?

Monthly mortage is £668 and the endowment is £91. Would have to go for 30 years again (term means nothing as suggested we are selling up once my financial commitment to the kids has finished) and probably a fixed rate this time.

HGF

Whats the property value? How much you want to borrow?

You might not get over 30 years as lenders like you to make it make age of retirement 65!

spendleb

HGF wrote: »

Whats the property value? How much you want to borrow?

You might not get over 30 years as lenders like you to make it make age of retirement 65!

Took the mortgage out 3 years ago and they gave me a 32 year term so should be OK. House is worth £230k so presumably borrow £180k again as that is what is left on the mortgage?

HGF

You'll need to find a lender to give you a calculation on that one if its 30 years, sorry. Most calculators only go to 25 years.

If its over 25 years for those amounts your looking at over £1000 on a fixed rate or sub that on a tracker but you'll need to factor in the endowment as well unless you are getting rid of it. You have a high LTV so the rates you'll get won'y be as good as some.

spendleb

HGF wrote: »

You'll need to find a lender to give you a calculation on that one if its 30 years, sorry. Most calculators only go to 25 years.

If its over 25 years for those amounts your looking at over £1000 on a fixed rate or sub that on a tracker but you'll need to factor in the endowment as well unless you are getting rid of it. You have a high LTV so the rates you'll get won'y be as good as some.

Back to being stuffed then :mad: , at this rate I can't leave home, just no way I can afford it.....arghhhh why can't her mum pay off the mortgage, think she is holding out now to try and make me stay

HGF

Being realistic you have a large mortgage and only one person contributing to it - if she's no longer around so you'll have to compromise somewhere. Its not easy on one salary. Good luck.

spendleb

HGF wrote: »

Being realistic you have a large mortgage and only one person contributing to it - if she's no longer around so you'll have to compromise somewhere. Its not easy on one salary. Good luck.

It's not even that, she will be staying in the house, it's me who needs to move out and rent somewhere else. Her salary is terrible (M&S sales assistant) so she would not survive on her own or even get a new mortgage.

The bad decisions we make, we used to have a small mortgage but sold up and lived with her mum for a year whilst planning to build a new house on her mum's land, it all fell through when the plans were turned down, we then had to buy again at which time the housing market had gone through the roof hence the large mortgage. Maybe we will have to come to some arrangement and live in the same house but seperate lives or something, I can't see another way out of this, spend the next 15 months paying off my CC, of course the mortgage will still stuff us as it's currently not in a contract, that ended last year and it's just sat tracking the base rate now so could go up anyway a fair bit once they start raising the rates.