Endownment wont cover house purchase

samqu

Hi,
Were only a couple of years from the end of our mortgage repayment period with building society. About 4 years ago we had to cash in one of the big endownments against the house due to being out of work. This last 4 years has seem some work but lots of unemployment periods. We never told the mortgage company and still keep paying the interest only aspects to them. Have we done anything illegal by not telling the mortgage company?. We intend to put the house up for sale in a few weeks and hope that it sells before the end date on the mortgage. This would then allow us to pay the mortgage company before they likely repossess at the end (when they become aware we still over 80% of the moneys due). Any advice on what we should do?. Is it illegal not telling the mortgage company those few years back. I suppose we didnt tell them as we hoped finances would improve but havnt. Also with kids growing up at that time (now older) we didnt want them taking the home from us earlier. Any web site reading I can look at?.

originalmiscellany

Be very careful... I don't think I can advise you, but am just warning that selling a house in this current market takes 2 factors: a) time - a lot longer to sell than in the good years of the early 00's and b) Money - going for a lot less than you think.

dunstonh

Have we done anything illegal by not telling the mortgage company?.

No. The lender are only interested in your paying back your debt at redemption time. Whether you use money from the endowment or another source, doesn't matter.

cabbage

you could remortgage or ask to refinance the loan with your current lender if a) you can afford it and b) you don't want to sell and move out. If you do refinance I would strongly recommend a capital and interest repayment mortgage so that at the end of the term the house is paid for.

dimbo61

You have not given your age or your OH,s age and how much the property is worth and the mortgage outstanding plus the interest rate you are paying.
Now can you overpay ? A simple call to the lender asking that question !
If you have some spare cash then OP each month until your current IO mortgage finishes and see where you are in a couple of years.
Are you in a fixed rate period ? Could you remortgage now to a better deal with your current lender or a new lender ( maybe speak to one of them " whole of market mortgage broker") if the job situation is now safe!