Mortgage Endowment?

Scarla

Hello

I have been burying my head in the sand too long now and need to take out a mortgage edowment or something like this. I have approx. 15 years to go.

I wonder if anyone could tell me the best place to look, and also, does an endowment take into account your medical records? If so, I am going to stuggle.

Thank you.

amnblog

If you have an interest only mortgage you need to start paying back the capital a little each month.

Endowments are no longer recommended nor available.

You can switch your mortgage to a repayment basis, but it is more flexible to simply overpay every month.

warwicktiger

Why do you need a "Mortgage endowment" now? I can only guess you are on an interest only mortgage and not set up a repayment vehicle.
If I am right then consider that Endowments have largely failed over recent years so cast your net wider.

lonestarfan

Scarla wrote: »

Hello

I have been burying my head in the sand too long now and need to take out a mortgage edowment or something like this. I have approx. 15 years to go.

I wonder if anyone could tell me the best place to look, and also, does an endowment take into account your medical records? If so, I am going to stuggle.

Thank you.

Why do you think you need an endowment? What are you trying to resolve?
For example - Do you want life insurance on your life to clear a debt if you die or are are you trying to repay debt whilst you are alive and looking for a savings vehicle to eventually clear a debt?

Scarla

Thank you for the replies.

I thought I'd need an endowment to pay off my mortgage when it comes to an end.

If I change the mortgage to repayment, will it take into account the amount I currently owe on my mortgage and the amount of time I have left on it?

Sorry if I have caused any confusion.

I don't need any more life insurance (which I wouldn't get anyway), I just need to ensure the mortgage is paid off when it comes to the end of the term.

dunstonh

I thought I'd need an endowment to pay off my mortgage when it comes to an end.

The last mainstream endowment provider pulled out in 2004. Plus, with a 15 year term, an endowment would be of little use anyway.

If I change the mortgage to repayment, will it take into account the amount I currently owe on my mortgage and the amount of time I have left on it?

yes. However, you need to be prepared for the level of increase you are going to have. You may want to try a mortgage calculator taking your current balance over 15 years to see what the payments will roughly be. It will be quite a jump.

amnblog

Speak to your lender about options.

If you set it up on repayment they will calculate the payments based on the amount left and the current term. This may involve them rechecking affordability.

amnblog

Don't worry about them saying you can't afford what you have and putting pressure on you to sell - that won't happen.

Thrugelmir

Scarla wrote: »

Thank you for the replies.

I thought I'd need an endowment to pay off my mortgage when it comes to an end.

If I change the mortgage to repayment, will it take into account the amount I currently owe on my mortgage and the amount of time I have left on it?

Sorry if I have caused any confusion.

I don't need any more life insurance (which I wouldn't get anyway), I just need to ensure the mortgage is paid off when it comes to the end of the term.

How much do you owe and what is the current rate of interest you pay?

Scarla

I think it's in the region of £126,000 and I think the interest is 3.5%.

I will have to check.

Scarla

Hello

I have used a mortgage calculator on MSE and I have no hopes of paying off my mortgage within the alloted years, and if I change it to a repayment mortgage, I just would not be able to afford it. I could manage approx £200 extra a month but that is all.

I have been so stupid and now am worrying myself sick. Is there anything I can invest in that would see a good return over the next 15-20 years?

The figures as they stand are: £338 repayment per month on an interest only mortgage, the interest rate is 3.5% and there are 20 years left to pay.

I simply can't tell my husband, it would be the divorce courts for me, so just despair. The calculator said I would need to make repayments of approx. £900 per month which is just impossible.

Please can anybody advise, without judging me. Thank you.