Endowment has matured

huttonempire

Can any one help? I have a mortgage split into 73k covered by endowment policies, on interest only and 40k on capital repayment, all repayable by 2020. My first endowment matures in July and I phoned my mortgage company to talk through what would happen. I told them that I will be repaying 35k of my interest only and they informed me my monthly repayment would rise by £300, how can this be?

dunstonh

I told them that I will be repaying 35k of my interest only and they informed me my monthly repayment would rise by £300, how can this be?

If you are switching part of your interest only mortgage to repayment basis then you would see an increase. If it isnt that then you would need to ask them.

huttonempire

No everything is staying the same ie I will only have 38K left on interest only

Annisele

My guess is that the person you spoke to thought that you only had one endowment policy. So, they think you'd originally intended to pay £73k of your mortgage with endowment policies, but you have a horrendous shortfall and the maturity value is only £35k - apparently leaving you with £38k of mortgage with no repayment vehicle. I suspect that they've "helpfully" assumed that you must want to switch that part to repayment.

But as dunstonh says, if you're keeping everything the same - and if your lender agrees that you're keeping everything the same - then you'll have to ask your lender what's going on.