Endowment nightmare

Tricky-trev

Can anybody please help us ?
In 1998 we took out an endowment mortgage with Bradford and Bingley BS for a period of 20 years,after paying high interest for about eighteen months we moved the mortgage to First Direct Bank.
We have been receiving letters informing us that there will most likely be a shortfall of some £15,600 this in itself is bad enough but we have just received a letter from First Direct informing us the the debt must be repaid by July next year as my wife will be 65. The problem is that the policy does not mature until 2018 leaving a three year gap .
We have spoken to the bank who were unsympathetic,when I asked what would happen in July next year they said we are unable to comment.
As you can imagine this is causing us both a great deal of stress and anxiety and we are both unable to sleep with the worry.
Any advice would be appreciated
Regards


Tricky-trev

dunstonh

The bank cannot change the terms of your mortgage. If first direct set the mortgage up for 2018 then they have to stick with that. Only if you changing deals would they be able to change a lending policy decision.

Any advice would be appreciated

If the mortgage was set up to end in 2018 then complain to First Direct saying they are breaking the terms of the contract.

if the mortgage was set up to 2015 then they are doing nothing wrong. You will need to change lender to another one.

Another option is to investigate what the surrender value of the endowment is plus your savings built up to fill that shortfall and perhaps use them now (or next July) to clear the mortgage at that point.