Endowment shortfall...On DMP...Where do I start??

Nunkin65

Hi

As my title suggests I am seeking help as to what I can do to resolve my issue with an endowment shortfall. Two endowments mature in July and August of 2015. One with Standard Life (approx 10k short of 20k sum) and One with Barclay Reassure (approx £700) short of £14,500 sum). My mortgage is with Birmingham Midshires (£65k in total outstanding till 2023). Mybig issue is that I am currently in a DMP with Payplan (15k paid 8k outstanding). This is subject to any extra interest ends in April 2016.

I really need help in deciding what to do next. I Haven't contacted my provider yet as I am not sure how to deal with this. Any help would be greatly appreciated.:rotfl:

ACG

You have 9 years left on what will effectively be a £40k mortgage.

Once the endowments clear (or even now), do/will you have spare cash to make over payments each month?

If the interest was 4%, you would need to be paying around £450 a month to have it cleared.

Personally i would just be overpaying by as much as i can, when i can to get the balance down (subject to any overpayment limits), the more you pay now, the lower the balance will be in 9 years even if you have not been able to clear it all. BM will be able to see you have made an effort to get the balance down and are more likely to grant you an extension on say a £15k balance than they are on a £40k where they can see you have tried.

Nunkin65

Many thanks for the reply. It's much appreciated. We currently pay BM £415 monthly so either overpayments or a small increase in future shouldn't be a problem. My failing is that because of the dreaded DMP I've been reluctant to make contact with BM as I wasn't sure they would give me the time of day! We've never missed payment with them, but I was concerned that they may not help because of the active DMP.

POPPYOSCAR

Are you sure they will be short by that much?

When our endowment paid out it was still short but because of the final bonus added it was more than we expected.

Nunkin65

Hi
Thanks for the reply. That's a good point as reading a few threads has revealed to me that there is a final bonus. I've just taken the figures from my annual statements from Standard Life and Reassure (I.e minimum payout). Every bit is going to help I suppose:-)

POPPYOSCAR

Although the final bonus is not guaranteed if you find out what they are paying out at the moment that will give you some guide as to what you might get.

We got £7000 more than we expected.

Nunkin65

That must have been a great surprise for you. I will give them a call anyway to see if there would be a bonus to the final amount.

I hadn't planned on much so anything would help.

POPPYOSCAR

Looking at this

http://www.standardlife.co.uk/1/content/resources/uk_internet/PDFs/Retail/bonusannouncement.pdf

It would seem Standard life endowment funds did ok last year.

Nunkin65

Yes they have improved on past results:-). Reassure don't pay out any final bonus so at present its a projected loss of £228-£1228. Standard Life does and projected loss is better. Not £10,000 but between £7000-£7700, so it's not as big a shortfall as I at first feared.

Nunkin65

Ok. Made a call to BM. They have offered me some options which is good.

I wasn't expecting much but basically apart from extra payments until the endowments mature, my payments hardly increase over the remaining 9 year's and 3 months. I'll post more details later :-)