£50k shortfall and 6 years mortgage left???

charismatic13

Hi All,

Could anyone advise me on how to make up £50k shortfall on interest only endowment mortgage - we have 6 years left on mortgage?? What options are there please??

Cornucopia

Unless you have a very low income, £50k over 6 years should easily be within scope of basic savings. Without taking into account interest earned or reduced, it's just under £700 per month.

For greater tax-efficiency, either use uncommitted ISA allowances to accumulate the funds, or make over-payments on the mortgage.

Dave_the_Ginger_Cat

I would get a quote from your existing lender to convert the £50k to capital and interest for the remainder of the term. If they are OK with it, it will be less than the £700 quoted below. You may also be able to extend the term of this C&I part to make it more affordable

All of this will be dependent on you meeting their income criteria, but worth asking

Thrugelmir

Cornucopia wrote: »

Unless you have a very low income, £50k over 6 years should easily be within scope of basic savings. Without taking into account interest earned or reduced, it's just under £700 per month.

Not neccessarily the sort of sum that every household can find every month.

Radiantsoul

I guess options are: - remortgage(with current or new lender), convert to repayment, sell and buy somewhere smaller.

I suppose it all depends on your surplus income, age and any other windfall/assets.