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Endownment due to end - not enough money to pay bank
sharpj
Posts: 43 Forumite
Hiya
My endownment is due to end in May 2015 but I will owe the bank approx £20,000. I have an offset mortgage too which is due to end 2017, but as we are paying extra per month I think it will finish in 2015 too. Should I wait until nearer the time and then contact my bank with the bad news, perhaps hoping they will give me a recalculated mortgage, or is it better I let them know now.
My endownment is due to end in May 2015 but I will owe the bank approx £20,000. I have an offset mortgage too which is due to end 2017, but as we are paying extra per month I think it will finish in 2015 too. Should I wait until nearer the time and then contact my bank with the bad news, perhaps hoping they will give me a recalculated mortgage, or is it better I let them know now.
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Comments
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I would suggest that you work out the likely shortfall now and plan accordingly. Once the endowment matures. This will reduce the interest you are paying and mean that theres no longer a premium to pay. This will allow you to direct more money at reducing the mortgage balance.
If you provide some figures. Then we can help you further.0 -
I think you should let the bank know now if you think there's going to be a problem, while there's plenty of time to sort something out.Liverpool is one of the wonders of Britain,
What it may grow to in time, I know not what.
Daniel Defoe: 1725.
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I'm sorry but the bank will not care about the shortfall and be considerate, they will rightly want there money back when the mortgages ends.
I strongly suggest arranging an appointment with the mortgage advisor to discuss the shortfall and look to transfer part of the mortgage to capital repayment if required to make up the shortfall.0 -
I'm sorry but the bank will not care about the shortfall and be considerate, they will rightly want there money back when the mortgages ends.
Not true. The majority of lenders will be prepared to extend the amount of the shortfall for up to 5 years providing the borrower has a clean record with them.
Leaving it until last minute though would be foolish.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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