Endowment ended NO lump sum can we extend?

solochild

Hi

Can anyone help me. My parents mortgage finished in Jan 2012, the originally took out an endowment mortgage and subsequent loans. they believed they had changed it to a repayment mortgage in the 90's. This seems it is not the case and have been paying interest only and the policy for the lump sun lapsed but not the loans which have since been paid.
My question is will Santander let my parents extended the mortgage term for say 12-24 months as they are divorcing and putting the house on the market. Therefore be able to pay off the lump sump. It is worth considerably more than the outstanding amount. They are both in their 60's one retired the other self employed with good credit history.

opinions4u

solochild wrote: »

My question is will Santander let my parents extended the mortgage term for say 12-24 months as they are divorcing and putting the house on the market. Therefore be able to pay off the lump sump.

Probably. But not on an interest only basis. They will most likely insist on a term, perhaps 5 years, which will mean very high payments.

Every annual statement your parents have received for the past few years has to,d them that they are on interest only. They should have acted sooner.

chalkie99

I spoke to Santander recently about a similar thing - interest only ending and a shortfall on the lump sum.

They were incredibly relaxed about it and seem willing to convert to a repayment mortgage and extend the mortgage to age 75.

There was a one-off fee of £75 to pay but no particular paperwork/references to worry about, though obviously payments will increase to pay off the capital.

I think there a huge number of people in the same situation.

sammyjammy

Your post doesn't make a lot of sense. Do your parents have paperwork that shows they changed to a repayment mortgage? When do they believe they did this? Are you saying they stopped paying into the endowment policy? If so did they get any money back from the policy?

solochild

Yes it is all confusing. we cant find the paperwork for the change of mortgage and we are looking into where the money for the years the policy was paid. to no avail. its hard to get information as both are blaming the other.


But thanks for your advice its been very useful. Any ideas how to find the money paid into the policy? The company has merged so many times its unreal.

opinions4u

solochild wrote: »

Yes it is all confusing. we cant find the paperwork for the change of mortgage and we are looking into where the money for the years the policy was paid. to no avail. its hard to get information as both are blaming the other.


But thanks for your advice its been very useful. Any ideas how to find the money paid into the policy? The company has merged so many times its unreal.

Tell us who the life assurance company was when the policy commenced.

getmore4less

what have santander said so far? it's been 6months