Endowment shortfall

denis06

I am desperately worried because my endowments have a shortfall of around £15000 on a £120000 mortgage. About £40K of this is on repayment mortgage. The mortgage has only 2 years to run.
I see that their is a form of guarantee with Norwich Union (now Aviva)
'if the funds are available' at Aviva. What is this guarantee worth and what can I do about this mess?

dunstonh

What is this guarantee worth and what can I do about this mess?

The guarantee is worth what it says. If it fully funded and at this late stage, it would be unlikely to be pulled. If they do, they have to give a few years notice and yours would have matured by then.

For you to have the MEP, that means you were first notified of a shortfall over 10 years ago. What have you been doing about it for the last 10 years?

Most lenders will allow you to extend the amount of the shortfall for up to 5 years on repayment basis if you have a clean lending history and are in good standing.