Repayment part endouwnmint

worrier2

We have a repayment mortgage with one third endowment, the endowment matures this year with shortfall and we intend to use part of the endowment to pay some higher interest debt, well does anyone know if we will have objections from Santander do they have a hold on the endowment we would be willing to remortgage the difference.

holly_hobby

If the endowment is assigned to the lender - then payment will go directly to them.

If not, payment will go to you - whether you choose to reduce your mge borrowings with the maturity value, or not, is a choice for you - with the fallout being that you will need to find the os int only element of your mge, when the mge term ends.

At that time, you could apply for a mge term extenstion, having the os IO element transferred to a C&I arrangement - but this would be at the complete discrection of Santander and your status at the time.

Or, you could use the maturity value to repay the IO mge, and switch any residual sfall over to C&I over the remaining mge term, in line with the rest of your current mge borrowings, which will ensure full repayment of your mge at scheduled redemption.

Hope this helps

Holly

worrier2

Thanks loads Holly. Sorry to sound dim but what is C&I.
Will have to find out from Standard Life if endowment is tied into lender - I really hope not.

holly_hobby

Sorry ... C&I = repayment mortgage.

H x

magpiecottage

holly_hobby wrote: »

Sorry ... C&I = repayment mortgage.

As in "Capital and Interest"