Endowment Maturing

prettypiglets

Hi Everyone


My endowment cheque is on its way. I have enough to cover the interest only part of my mortgage with some left over. I am going to use remaining to pay off some of my debts. I would also like my mortgage lender to reduce my monthly payment as I want to use this to pay off some debts. Will they do this?


I don't know as much as I should about mortgages so apologies in advance if this is a basic question everyone should know the answer.


Many Thanks


Mandy

lonestarfan

What do you mean - " cover the interest only part"?
What's left over after that and why? Is it a part and part loan then with soem interests only and some repayment?
Need some basic info such as age, income, what's the house worth and how much is left to pay.

prettypiglets

Hi lonestarfan


My mortgage is split as follows - statement as at 31.12.2014


Loan 1
Amount Outstanding £40,000
Monthly Payment £158.00
Interest Only - 4.74%
Term Remaining 11yrs 6 mnths
Early Repayment Charges 0.00


Loan 2
Amount Outstanding £44,904.00
Monthly Payment £422.72
Repayment - 4.74%
Term Remaining 11yrs 6 mnths
Early Repayment Charges 0.00


House was valued 2 months ago £125,000.


Income - joint £41,127 (Husbands 51 next and I am 48 next year.


Hope this helps


Thanks Mandy

lonestarfan

It is based on the oldest borrower so as hubby is 51 and his nra is going to be 67 then you should be able to get a 16 yr term. LTV looks good. Salary looks ok.
So it's your lender. Or your affordability especially as you want to pay off debts. Lots of posts recently on here show lending drops like a lead ballon when taking off debt on afforability calculations.
The brokers on here will correct me/ advise.
You omitted important bit about current lender.
Its not NRAM is it?
Also give outline of debt details so brokers can advise of its impact

lonestarfan

You'd get better replies if you changed the title of your thread to Extending mortage term. You do it under Edit, and Go Advanced

prettypiglets

My debts are £9591.00 Credit Cards (£2539 will be paid back by another family member but this will be small amounts). Cant remember the last time used the cards but only make minimum payments which needs to change. My endowment is £43,000 so I would like to pay £40,000 off interest only mortgage and use the remaining £3,000 towards debts.


Will Santander change my payment to £422.72 so paying £158 less which I can use to tackle my debts.


My apologies if my first posting was not clear.


Many thanks for your help.

lonestarfan

Sorry I thought you wanted to extend your term.
What you want is to pay off part 1 and just have part 2 open.
Tell them you wish to pay off the interest only part only and keep the repayment part open and I believe you will only need to pay £422.72 per month.
Just make sure you clarify with them first but that's how it worked for me.

prettypiglets

no its me Im no good explaining myself sometimes. Many thanks for taking the to reply very much appreciated