Endowment matures 1 month after mortgage is due.

Bocro

I will contact my bank today but I was wondering if anyone else has had this problem?

I have two endowments. One is payable in May but the other is payable in July. I know I should have double checked but have only just realised this. The mortgage is due in June.

(P.S. The endowment, of course, doesn't fully cover the mortgage but I have savings to cover that shortfall).

silvercar

I doubt it is going to be a big issue.

They may well write and ask you to repay and you will then tell them that the final payment will be made in June. They may jump up and down, but bottom line is they can't get a repossession order actioned in 1 month.

Bocro

Thanks for the reply.

The bank was okay. They asked me to pay off the larger balance in June and have agreed to the remainder being paid off in July.

audigex

Sometimes even banks have to bow to the inevitable.... they basically get a free month's interest on the balance anyway, so they don't have much to complain about

dunstonh

Banks normally allow extensions in cases like this as its very common (as people move lenders the months no longer sync). Ideally, the mortgages should have been set to hit redemption after the mortgage but what you describe happens frequently enough and a lender should be fine about it as long as you have a good payment history with them.

Thrugelmir

audigex wrote: »

Sometimes even banks have to bow to the inevitable.... they basically get a free month's interest on the balance anyway, so they don't have much to complain about

Alternatively all parties simply discuss the issue in an open manner and a suitable arrangement is agreed. Without any fuss or hassle.

audigex

That was kind of my point - you tell them the situation, they accept there's nothing either you or they can do about it and come to an agreement?

Goldiegirl

It wouldn't have been a big deal to the bank.

Contrary to popular belief, common sense is often exercised!