Endownment shortfall advice needed

sineadcavanagh

My parents mortgage term ends soon and there is a shortfall of £10k because the endowment associated with the mortgage has paid less then expected. Will the building society demand the shortfall to be paid back or will they place him on another mortgage deal. My father is retired and so has no income outside his pension. Should he just paid the shortfall, or what other options are there. The mortgage is with the Halifax.
Thanks for your help

dunstonh

Will the building society demand the shortfall to be paid back or will they place him on another mortgage deal.

Most lenders will allow a small extension. Typically up to 5 years for the amount of the shortfall.

what other options are there.

Its a bit late now. Shortfalls have been projected for about a decade now. The earlier you look at it the better. So, there is little they can do now except approach the lender and ask for the shortfall amount to be extended.