Parents will

nanny_beach

You all need to sit down, I agree with other posters, in the 80s my Ex Hubby and I had endowment mortgages because they were a cheaper monthly payment, and the endowment part gave you life insurance, in those days I never hear of one not paying up. If you borrowed £50.000, thats what the endowment was taken out for at the same time. In the 90s, my (now0 Hubby and I took out an endowment to buy our authority property. Two years down the line we got the first "waning" letter it wouldnt pay the mortgage off, we had choices of changing part or all to a re-payment, we moved, after another year. Bought a property for cash (a real doer upper!!!) but carried on paying the endowment, because if we had cashed it in at that point, we wouldnt even have got back what we paid in. We chose a medium cost, which was meant to pay the mortgage off and give us a little extra. We kept an eye on annual letters telling us how much the endowment was worth. We had the option of selling it as well, but desided to look upon it as a savings plan. We finnally cashed it in when we needed the money for renovation. We had countless letters warning us that the endowment would not pay up, but we had paid off the mortgage, mortgage free in 3 years. Everyone said how lucky we were it wasnt luck, and the next property needed EVERTHING doing, didnt even have central heating for several years.

Brock_and_Roll

Of course it entirely depends on where the house is, however, according to ONS figures, prices on average have risen 126% (1975-2014) so on the face of it a property costing £80k (i.e. a 1005 mortgage) or so may well for £160k-£180k now.


Anyway, there should on the face of it be enough equity for some kind of lifetime mortgage so no one needs to panic at this stage. Why is the title of the post "parents will" - what has their will got to do with all this?

vacheron

Brock_and_Roll wrote: »

Of course it entirely depends on where the house is, however, according to ONS figures, prices on average have risen 126% (1975-2014) so on the face of it a property costing £80k (i.e. a 1005 mortgage) or so may well for £160k-£180k now.


Anyway, there should on the face of it be enough equity for some kind of lifetime mortgage so no one needs to panic at this stage. Why is the title of the post "parents will" - what has their will got to do with all this?

Are you sure? My parents bought their house in 1977 for £14,000 and it's now worth about £180,000 126% would make it currently worth £31,650?

chelseablue

vacheron wrote: »

Are you sure? My parents bought their house in 1977 for £14,000 and it's now worth about £180,000 126% would make it currently worth £31,650?

I agree, my parents bought their house in 1997 for £62,000, house across the road sold last month for £389,000

Apodemus

chelseablue wrote: »

I agree, my parents bought their house in 1997 for £62,000, house across the road sold last month for £389,000

The quick data I can find on ONS for UK average prices only goes back to 1990 and shows a 490% increase between 1990 and 2016. Some areas will, of course, have done better and some worse over that period.

Marmaduke123

We paid £26,000 for our house in 1978. Houses in our road are going for just shy of £500,000

Richey_

nanny_beach wrote: »

You all need to sit down, I agree with other posters, in the 80s my Ex Hubby and I had endowment mortgages because they were a cheaper monthly payment, and the endowment part gave you life insurance, in those days I never hear of one not paying up. If you borrowed £50.000, thats what the endowment was taken out for at the same time. In the 90s, my (now0 Hubby and I took out an endowment to buy our authority property. Two years down the line we got the first "waning" letter it wouldnt pay the mortgage off, we had choices of changing part or all to a re-payment, we moved, after another year. Bought a property for cash (a real doer upper!!!) but carried on paying the endowment, because if we had cashed it in at that point, we wouldnt even have got back what we paid in. We chose a medium cost, which was meant to pay the mortgage off and give us a little extra. We kept an eye on annual letters telling us how much the endowment was worth. We had the option of selling it as well, but desided to look upon it as a savings plan. We finnally cashed it in when we needed the money for renovation. We had countless letters warning us that the endowment would not pay up, but we had paid off the mortgage, mortgage free in 3 years. Everyone said how lucky we were it wasnt luck, and the next property needed EVERTHING doing, didnt even have central heating for several years.

Bragging about your own gains is hardly going to either help OP or make them feel better.......

Kynthia

Richey_ wrote: »

Bragging about your own gains is hardly going to either help OP or make them feel better.......

I think the point wasn't to brag but the fact that when things changed and endowments were no longer going to pay off the mortgage there was lots of warning and communication. So therefore the OP's parents must have had decades to act and haven't. Well that's how I read it.