Mortgage shortfall in 9 years. What options do i have?

Sirlaughalot

michaels wrote: »

If your current rate is base plus 1% and you can do better elsewhere (which you can) then it makes more sense to build up a cash fund elsewhere, preferably in an ISA than pay off the mortgage at the moment. You can always reverse that stance if the mortgage ratee exceeds what you can get net on your savings at a future date.

Thanks for clarification that`s what i thought but it looked so simple assumed i must be doing something wrong! LOL

SL

davenport151

Sirlaughalot wrote: »

Was that the FCA inquiry that was announced last week?

Potentially that could be very good news indeed. For other MSE members in a similar position to myself would surrendering your endowment policy make you exempt from any possible outcome?

Could this inquiry have major consequences for members who were originally 'Time Barred' on there original endowment miss selling claims to the Financial Ombudsman Service?

Many thanks

SL

How would I know if funds on my unit linked endowment were closed funds?

Sirlaughalot

davenport151 wrote: »

How would I know if funds on my unit linked endowment were closed funds?

.

Have a look at your last annual statement from your policy provider and check which funds you are invested in.

Then check the funds on ft.com. One of mine was not listed so i rang my policy provider to explain why this was the case and he said it was closed to new business.

You could just go straight to the provider and ask if you wish as it`s your investments/money.

Think this closed to new business fund could be the tip of the iceberg with regards to mismanagement of these funds and yet another financial scandal could be on the horizon.

Fingers and everything else crossed!

SL

Sirlaughalot

Thrugelmir wrote: »

FCA is going to tackle issue of closed funds. So don't be hasty. There may be an upturn in the future returns.

Does anyone know if this investigation by the FCA has been concluded and if so what was the outcome. I believe it was a wide ranging investigation covering a wide spectrum of fund managed investments if this helps and was launched about 18 months ago.

Many Thanks

Thrugelmir

Sirlaughalot wrote: »

Does anyone know if this investigation by the FCA has been concluded and if so what was the outcome. I believe it was a wide ranging investigation covering a wide spectrum of fund managed investments if this helps and was launched about 18 months ago.

Many Thanks

Still ongoing.

Let_Us_See

Sirlaughalot wrote: »

I`m looking at a endowment shortfall of about 22K from the last shortfall notification letter i had. The shortfall will be required in 9 years time! In 10 years time i will be getting a gratuity of around £14K.

The investment is in a unit linked stock market fund i don`t want to surrender the policy as i do believe at some point in the next 9 years the stock market will flourish again.

What options do i have come the end of the term if the short fall still exists( will be 58 years young then!) SL

Your current mortgage term has 9 years to run when you will be 57 years of age. Unless you are on an extremely low lifetime interest rate, why not simply re-mortgage and extend the term? Even if you are tied-in with a 5 year fixed rate, you will still have plenty of time to re-mortgage and extend the term. Far better to have a longer term with the option of redeeming earlier.

Yes, you can use your gratuity to make a capital repayment, but remember to check your mortgage terms and conditions, to ensure you do not exceed your allowance, or re-mortgage making a capital repayment and borrow just the remaining balance.

Lots of options, but whatever you decide, take action!

Have you taken any action?

Sirlaughalot

Let_Us_See wrote: »

Your current mortgage term has 9 years to run when you will be 57 years of age. Unless you are on an extremely low lifetime interest rate, why not simply re-mortgage and extend the term? Even if you are tied-in with a 5 year fixed rate, you will still have plenty of time to re-mortgage and extend the term. Far better to have a longer term with the option of redeeming earlier.

Yes, you can use your gratuity to make a capital repayment, but remember to check you mortgage terms and conditions, to ensure you do not exceed your allowance, or re-mortgage making a capital repayment and borrow just the remaining balance.

Lots of options, but whatever you decide, take action!

Have you taken any action?

Thanks Let Us See,

Yes i have taken some action i am putting away £300 a month into my Santander 321 account which pays 3% which is better than paying off the capital on my mortgage as this makes better financial sense while interest rates are at these historic lows. Once they change i will review the situation.

I am hoping for a bit of luck regarding the financial investigation as i was unable to convince the ombudsman that i was miss sold an endowment mortgage due to time bar.

Thanks for your help

SL

Sirlaughalot

Does anyone know if this investigation by the FCA has been concluded and if so what was the outcome. I believe it was a wide ranging investigation covering a wide spectrum of fund managed investments if this helps and was launched about 2 years ago

Sirlaughalot

Does anyone know if this investigation by the FCA has been concluded and if so what was the outcome. I believe it was a wide ranging investigation covering a wide spectrum of fund managed investments if this helps and was launched about 2 & 1/2 years ago

theshed

This sounds a familiar tale.
We have an offset mortgage which I also overpay on but are still going to be left with a shortfall.
I have a small endowment maturing soon, is it worth using this as a 'deposit' and converting to a repayment ?
Any advice please ?