Alliance & Leicester Mortgage Endowment Advice

ScottyCroft

Hi

A few years ago I had to bring up 3 kids on my own (as a single parent) and I had to let the Endowment policy on my mortgage go as I could not afford to pay it on my own.

Last year I was told by someone at citizens advice that there was options but I was a year too early and to return this year.

Having gone back this year, now nearing end of my 25 year term and owing A&L £30,000 on my mortgage which has to be paid in a few months I returned to the citizens advice to be told by an unhelpful person that my only option is to sell the house to pay off the outstanding amount.

Is this really my only option? as I cannot afford to buy another home, virtually leaving my chronically ill son and I homeless.

Thrugelmir

Do you have the income to support a repayment mortgage?

ScottyCroft

Thrugelmir wrote: »

Do you have the income to support a repayment mortgage?

What is an repayment mortgage?

Sorry I should have explained that as I am caring for my son 24/7 we are currently living on benefits.

dunstonh

I returned to the citizens advice to be told by an unhelpful person that my only option is to sell the house to pay off the outstanding amount.

There isnt much else in the way of options. Lenders will often extend the mortgage for a few years if you are running a bit short but in your case, you are talking about a large amount with no repayment plan. You also have little income and no new lender is going to lend to you. you need to go to the existing lender and see what they say about switching to a repayment mortgage and perhaps extending the term for 10 years. Or sell up and move to rented.

Dave_Ham

You have some income and therefore depending upon this and your age, you may be able to source a mortgage for the remaining £30k over a new term.

This would be repayment so you actually pay it off.

Depends upon age and what type of benefits you get...

ScottyCroft

Hi there.

I went back to the citizen's advice to see a housing advisor who suggested this government scheme which apparently has only been succesful for a handful of people (though I may have picked this up wrong).

This government scheme is called the "New supply shared equity scheme" based on the fact that my son has a disability.

Apparently I have to sell my house for a new home more suitable to my son's needs and the government will give me percentage towards it.

Is it worth me applying? as I spoke to the building society and they suggested the repayment mortgage as mentioned earlier in the thread.

Dave_Ham

I do not know enough about it, although would suggest that you already have your own home personalised to appropriately cater for your Son's disability.

I think it is worth researching this option (unfortunately I have not one before) although I cannot understand why you do not raise the £30k with another lender on a repayment basis to give you security in your current home.

I would think you get enough financial support to be able to be accepted by a lender?

All the best

kingstreet

What happened to the value of the endowment policy when you "let it go?"