Extend my mortgage?

cosmic_2

As I now have a quite large shortfall one of my options is to extend my mortgage beyond the due date of my loan, and also of course the endowment part would have to be extended too. In the paperwork that I recieved with my yearly statement it states that if I was to go down that road and vary my policy I could face extra charges and tax liability. Can anyone help with advice and explain what charges and tax liability I may face.
Thank you for reading this.
Cosmic

brannyrhino_2

Not sure of the Tax etc but i would not go down that route anyway.
What if you do and the performance of the endowment gets worse which is very likely?

My advice is transfer the shortfall part of your mortgage to a capital and interest basis to guarantee it will be paid off at the end of the existing term or an extended term if you so require.

Don't get bitten again by the endowment!!!

Compensationitis

Who is it with and when did it start?

cosmic_2

Thank you for your answers, My endowment is with Standard Life who as you may know are heading for demutualisation early 2006, this is one of the reasons that I would like to roll my endowment over and at least get something towards my shortfall when they demutualise.
Cosmic

Compensationitis

When did the policy start?

cosmic_2

20yrs ago Nov '85

Compensationitis

You don't have much to worry about, wish I had that policy.

You shouldn't alter the term of the endowment. If you are still worried I would pay a bit off the mortgage when the lender allows it, I used to recommend payments just before the anniversary date.

Are you still with the same mortgage and property?

cosmic_2

yes on both counts
Thank you for the info'

Compensationitis

Cosmic

I had a look through my files to find a recent actual maturity with Standard Life, the only one I have at present is a mere 16 year term but it shows how they are doing. Go back to the above link and see where I've added the following:

"NEW Standard Life 16 year mortgage endowment maturity, reprojection letter was misleading customer and this policy was VERY SHORT term but it matured with a surplus, the vast majority are 25 year term and do much better."

cosmic_2

Thank you again for your time with my problem. I don't know if I'm missing something, but in your last post you have asked me to "Go back to the above link" but I am unable to find the link?
I am sorry for my delay in getting back to you but my Internet link at work is down for a while so I have to wait till I get home.
I hope that I am not inconveniencing you with my questions but I do appreciate you help.
Cosmic

Compensationitis

I'll send it in private mode.