Mortgage Endowment?

silvercar

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.

I don't understand this. Is the mortgage a joint responsibility? Do you share finances with your husband? Why are you struggling with this alone?

That aside, one option is to put away £200 a month to reduce the balance. When the time comes you could possibly extend the term or sell up and buy something smaller or in a cheaper area with the equity that has built up.

Scarla

Thank you for replying, my husband is not aware that there is no endowment in place or that the mortgage is currently interest-only.

He leaves me to pay all the bills, and at one point I couldn't afford the repayment so had to change it to interest-only, and stupidly I though I could change it back when sorted. This was a few years ago, and only now, am I starting to see what I've done.

He also leaves me with little money, so repaying over £700 is just impossible.

I was awake until 5.30am, looking for policies that I could invest in, but it seems that the only thing I could do is invest in stocks and shares, which I have no idea about.

If my husband finds out, he will divorce me, it's as simple as that and something I can't allow to happen.

Jon_B_2

Aside from your financial predicament. Your husband doesn't sound like someone you would want to share your life with. If you can't turn to your closest confidant about this and have the associated support then why should you worry yourself sick about it? It's not only your responsibility to repay the mortgage.

Unless you drop the bombshell that only your name is on the mortgage...

Scarla

No, it isn't. It's in joint names.

I did ask not to be judged. The facts are as I have stated them, it is down to me to sort out the mortgage and repayments and there is nothing I can do about it. Was really looking for some advice about saving/investments/endowments etc.

Thank you for replying.

ViolaLass

start by overpaying with the £200 you say you can afford. At least then you'll be doing something to bring the balance down while you think about other options.

Scarla

What about a pension? Could that be possible, if I can take a lump sum. I have no pension currently.

Mortgage_Mark_2

Scarla wrote: »

What about a pension? Could that be possible, if I can take a lump sum. I have no pension currently.

In order to take a lump sum, you have to have a pension fund, so that's a non-starter.

Your options are essentially to either switch to repayment (which you've said is unaffordable as will be likely double your current payment), overpay by the £200 per month and hope that in a few years you've reduced the debt, or speak with a financial adviser to see about and investments etc. Likely to have to be quite high risk, volatile investments to raise £126k in 15yrs using £200 a month so you'd need to be prepared to lose it all.

silvercar

Scarla wrote: »

Thank you for replying, my husband is not aware that there is no endowment in place or that the mortgage is currently interest-only.

He leaves me to pay all the bills, and at one point I couldn't afford the repayment so had to change it to interest-only, and stupidly I though I could change it back when sorted. This was a few years ago, and only now, am I starting to see what I've done.

He also leaves me with little money, so repaying over £700 is just impossible.

I was awake until 5.30am, looking for policies that I could invest in, but it seems that the only thing I could do is invest in stocks and shares, which I have no idea about.

If my husband finds out, he will divorce me, it's as simple as that and something I can't allow to happen.

Your life, your marriage.

Given there are already lies or omissions in place, would one more make a difference? Your call.

There has been a lot of publicity about endowments failing to produce enough growth to clear the mortgage. You could tell him that the endowment has performed really badly and there will be a big shortfall on the mortgage.

Imma_Number

£338 @ 3.5% Interest Only would be a balance of £116,000

£126,000 @ 3.5% Interest Only would be £368pcm

Either the payment figure you provided has a typo in one digit or the balance does or something else is squffy. Can you double check them?

I'd suggest trying the Debt-Free Wannabe board for hints and tips for reducing outgoings/getting extra income. They helped me save a bundle each month which I put towards paying off my mortgage.

andyfromotley

There is no realistic product which will pay your mortgage. Be very careful as you are searching for something that in reality does not exist you may be willing to grasp at any scheme which promises high returns, this puts your money at great risk.

Any reasonably safe savings or investment will earn you no more than around 3% at most. You could do this and hope that returns rocket of the next 15 years due to inflation and you may have more to pay them, however this is looking extremely unlikely. You have looked at the figures and the calculator is right, in order to pay off your mortgage you need to find around £600 pm

Assuming that your husband doesn't die in the next 15 years, or that you don't win the lottery you have two choices, tell him now or tell him in 15 years time. Which would you prefer it were you?