Partner passed away, maturity ends june 2012 not sure how to deal with situation?

chelsea503

Hi my partner recently passed away in june and I am searching for some advice on how best to go about dealing with our home which was in joint name and was a interest only
mortgage and the maturity of the house is ending in June 2012 which will be repossesed if not paid in full by this date. I have some details here which may be relevant to give you a clearer idea of my situation.

* The short fall is of £38,000 .

* All bills including Nationwide interest for home = £600 a month.

* Another policy I will receive after probate letters processed is for £18,300.

* My wages a month after tax = £1040.00.

* I am currently on statutory sick pay, full pay till july 31st half commencing this date till 30th sep.

* Our home is a 4 bedroom house.


Any help be very much appreciated. Thanks.

molerat

Sorry for your loss.

Is their no endowment / insurance covering the mortgage ?

Senior_Paper_Monitor

Again, sorry for your loss.

There is too little information there to suggest the actual solution (and ultimately this will probably include downsizing) but on the face of it the situation sounds totally controllable.

I would suggest you contact a good broker/IFA who will help you through the process - I can't see you getting a detailed solution on any internet forum including this one (with no disrespect to the large numberof knowledgeable/qualified contributors)

Valli

Sorry for your loss

you DO need to check your policy - there should be (I'm assuming it's an endowment reading between the lines of your post) a proviso should one or both parties die before the policy matures.

Failing that though

when the £18K comes through you COULD pay that towards your mortgage which will almost halve the shortfall, leaving you approx £20K to find.
What's your outstanding mortgage balance?

However what you do need to do, as soon as you are able, is go through your policy and check if there's any money due.

chelsea503

Hi thanks for you replys, yes there was two endownment policies one was cashed in seveal years ago as it was not working and the other endownment which was linked the the mortgage has been paid but still leaves an outstanding ballance of £38,000.
There is a monthly insurance premium showing on the breakdown of the montly payment cost, not sure what it covers could be house insurance? Thanks

Annisele

Are you certain that your house will be repossessed in July 2012 if you can't pay the mortgage by that date?

Lenders are used to endowment shortfalls, and if you're simply in the situation where your mortgage term ends and you don't have the money, the lender will not repossess immediately.

chelsea503

I were under the impression this is what would happen. I have no idea the procedures really as my partner used to take care of this side. Thanks

silvercar

You need to check with your lender. Unless you have lived in the same home for 25 years without mortgaging it is likely that the end date of your mortgage is not the end date of the endowment policy.

In any case it is often possible to extend the term of the mortgage.

One solution is to use the endowment to reduce the mortgage, pay the maturing policy in to reduce the mortgage and that will leave you with free money to help clear the capital outstanding. Remember you won't have endowment premiums to pay.

KRB2725

Sorry for your loss.

Try and find out what the insurance was for if you don't know. There may be a payout due from that if it was or had any form of life cover linked to it.

Hope you manage to get things sorted.

chelsea503

the mortgage would have been 25 years next year june 2012 .

dunstonh

When one of the endowments was surrendered, what happened to the money that it had made? (spent or reduced mortgage)
Did your partner set up a replacement life assurance policy? (normal course of action)
If the mortgage is finishing next year, what was put in place to cover the surrendered endowment? (i.e. was it switched to repayment basis or an ISA set up)