Endowment shortfall Bradford & Bingley

Bacon_Omlet

I have an endowment mortgage with the Bradford and Bingley, my mortgage comes to an end in 18 months and I haven’t got an endowment to pay off the mortgage, I have spoken to them today and they have said that I have to pay the outstanding balance or sell my house, I am not in arrears with the payments and have a good payment history but I cant get a mortgage elsewhere, they have said that any other lender would extend the time of the mortgage up until I was 72 but because the B&B have been nationalised they cant do this, can anyone give me some advice about what to do.

Dick_here

Pay the outstanding balance or sell the house to do so.

holly_hobby

There are lenders with a max age of 80-85 - but if your income and LTV did secure a further interest only mortgage - at some point it has to be repaid ... so in my opininon you are just delaying the inevitible here ...

Unless that is both your age and the LTV of the property allow you to consider a lifetime mortgage arrangement - whereby the mortgage is ordinarilly repayable upon entry into long term care or death.

Obvious solution is to sell up and go into rented ..

Hope this helps

Holly

magpiecottage

The obvious question is why do you not have an endowment?

Bacon_Omlet

My existing outstanding mortgage is only about 20% of the value of my home, I do not want to sell and I have asked Bradford and Bingley if they could switch it to a repayment mortgage and give me another 10 years to pay it off but they have said no.

At the end of the mortgage will the B&B have to take me to court to repossess or force me to sell and if I put the 10 year switch to a repayment mortgage plan to the court is it up to the judge.

Holly it not so much as
delaying the inevitable, so much as trying to keep my home and protect my life savings in it, any other lender would extend the term no problem but because my lenders been nationalised they will not.

betmunch

Bacon_Omlet wrote: »

At the end of the mortgage will the B&B have to take me to court to repossess or force me to sell and if I put the 10 year switch to a repayment mortgage plan to the court is it up to the judge.

Why not just take a 10 year repayment mortgage with another lender then?

Got to be better than risking a judge siding with B&B, after all, they are not the one breaking the terms of the contract

Thrugelmir

Bacon_Omlet wrote: »

At the end of the mortgage will the B&B have to take me to court to repossess or force me to sell and if I put the 10 year switch to a repayment mortgage plan to the court is it up to the judge.

The judge will not over rule a commercial decision. Your contract ends in 18 months. So will side with the lender.

Court action will merely cost you a lot of money. Better to prepare to sell now.

Annisele

How old are you, and how much do you earn compared to your mortgage loan?

If, say, you were 55, earning £30k, and had a £20k mortgage on a £100k property, then I'd say the obvious solution was to remortgage elsewhere.

If you were 75, your earnings were state pension only, and you owed £40k on a £200k property and you'd been funding the difference from savings, remortgage elsewhere isn't going to help you.

dunstonh

You cannot force a lender to lend to you. Especially one that is closed for business and has a remit to reduce the book. Not take on new high risk debt. A judge cannot force a lender to lend money either.

Your contract is about to end. You are going to fail the contract terms and that will lead to repossession. The judge will not side with you as you have known this date was coming for 25 odd years.

So, keeping all emotion out of it, your cold hard choices are
1 - get a mortgage elsewhere
2 - sell up
3 - take out equity release

The question as to why you dont have an endowment or a means to repay the mortgage is a valid one. The answers to that could lead to other outcomes. By being rude in response you will just alienate people that can help you.

Bacon_Omlet

Thrugelmir wrote: »

The judge will not over rule a commercial decision. Your contract ends in 18 months. So will side with the lender.

Court action will merely cost you a lot of money. Better to prepare to sell now.

Thats what courts and judges are for to consider if a contract or commercial decision if fair, and I will not be taking them to court surely it is they that will be taking me to court to force me to sell or repossess.

If this is the quality of your advice please don’t bother giving me anymore thank you.

Thrugelmir

Bacon_Omlet wrote: »

Thats what courts and judges are for to consider if a contract or commercial decision if fair, and I will not be taking them to court surely it is they that will be taking me to court to force me to sell or repossess.

If this is the quality of your advice please don’t bother giving me anymore thank you.

Sorry that it wasn't what you wanted to hear. But its factual.

The contract was fair. Rather late to argue it wasn't when it's you that's made no provision for repayment.

Seeing as you wish to be direct about matters. The position you find yourself is of your making. So don't expect any empathy vote by being obstructive rather than constructive.