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Endowment Mortgage comeing to end ... no endowment policy and no job!
Cals72
Posts: 23 Forumite
Hi
I wonder if you anyone could offer any advice?
My dad, before separating from my mum, bought a house nearly 25 years ago at approximately £32K and then borrowed a some additional monies (secured) against the mortgage to take it up to £46K. I would estimate conservatively that the house is valued at £100k now.
My parents separated and my dad has been living in the home on his own for the last 15 years. Over the course of the last 3 years he became ill and has stopped working and his housing costs have been paid by housing benefit.
He has recently received a call from his mortgage company - halifax - and as part of the call they mentioned that the mortgage is due in 6 month given it was an endowment mortgage. So effectively he needs to come to come up with the £46k or remortgage his house.
Unfortunately (and stupidly i accept) one of the ways he saved on his monthly outgoings was to stop the endowment policy that went alongside the mortgage?
Clearly if he isn't working he wont be able to get another mortgage and i am at a loss as to where to start looking for advice - im worried that he will loose the house and have to move.
I have about a 1/3 of the money required in savings but that wouldn't be enough. I have also mortgage and doubt i would be able to get another.
Has anyone else ever been in this position and could offer some advice.
Thanks
Cals
I wonder if you anyone could offer any advice?
My dad, before separating from my mum, bought a house nearly 25 years ago at approximately £32K and then borrowed a some additional monies (secured) against the mortgage to take it up to £46K. I would estimate conservatively that the house is valued at £100k now.
My parents separated and my dad has been living in the home on his own for the last 15 years. Over the course of the last 3 years he became ill and has stopped working and his housing costs have been paid by housing benefit.
He has recently received a call from his mortgage company - halifax - and as part of the call they mentioned that the mortgage is due in 6 month given it was an endowment mortgage. So effectively he needs to come to come up with the £46k or remortgage his house.
Unfortunately (and stupidly i accept) one of the ways he saved on his monthly outgoings was to stop the endowment policy that went alongside the mortgage?
Clearly if he isn't working he wont be able to get another mortgage and i am at a loss as to where to start looking for advice - im worried that he will loose the house and have to move.
I have about a 1/3 of the money required in savings but that wouldn't be enough. I have also mortgage and doubt i would be able to get another.
Has anyone else ever been in this position and could offer some advice.
Thanks
Cals
0
Comments
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Presumably he didn't just stop and made it paid-up, he surrendered it and spent the money?one of the ways he saved on his monthly outgoings was to stop the endowment policy that went alongside the mortgage?
If it is paid-up, it will have a maturity value, less than it would have been if he'd continued to make the payments.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Would the equity buy your father a flat?0
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a house bought for over 30k 25 years ago is surely worth closer to £150k now. If £46k is required, there is only one easy answer; sell the house and hopefully have £100k and buy the best place he can for that price.0
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