End of mortgage / endowment not due yet

Tamarmaid

Hi, I'm new, so please be kind!
Yesterday we recieved a letter from the bank to say our mortgage ends the end of this month. Foolishly, we thought it ended in Jusy at the same time as our endowment matures. There will be enough in the endowment fund to cover the outstanding mortgage,, but we don't have that kind of money available right now. Unless we do an early surrender of the endowment.

Are the bank likely to extend the mortgage for another 6 months? I've been so stressed. Unable to contact banks mortgage department until tomorrow.

Thank you in advance!

RADDERS

Tamarmaid wrote: »

Hi, I'm new, so please be kind!
Yesterday we recieved a letter from the bank to say our mortgage ends the end of this month. Foolishly, we thought it ended in Jusy at the same time as our endowment matures. There will be enough in the endowment fund to cover the outstanding mortgage,, but we don't have that kind of money available right now. Unless we do an early surrender of the endowment.

Are the bank likely to extend the mortgage for another 6 months? I've been so stressed. Unable to contact banks mortgage department until tomorrow.

Thank you in advance!

Don’t panic, this happens all the time as when the mortgage was taken out often the endowment took time to get set up.
Just give them a call and explain and I am sure that they will just put a note on your file and you will be able to pay in July as you don’t want to surrender early as you may not get the terminal bonus.

xyz123

RADDERS wrote: »

Don’t panic, this happens all the time as when the mortgage was taken out often the endowment took time to get set up.
Just give them a call and explain and I am sure that they will just put a note on your file and you will be able to pay in July as you don’t want to surrender early as you may not get the terminal bonus.

By all means try but extending mortgage and keep on borrowing possibly hundreds of thousands of pounds for few months does not go away by someone putting a "note" on file... I don't have a definite answer and please do call the mortgage provider but be realistic that it may involve more than just a phone call and a note on file...

enthusiasticsaver

I am sure there will not be a problem with this. You may have to pay an administration fee to extend the term though. Did the bank not have a charge on the endowment policy? I am surprised there is no shortfall as many of them do but it depends on how long you have had the policy. Don't cash it in early as you miss out on the terminal bonus.

RADDERS

xyz123 wrote: »

By all means try but extending mortgage and keep on borrowing possibly hundreds of thousands of pounds for few months does not go away by someone putting a "note" on file... I don't have a definite answer and please do call the mortgage provider but be realistic that it may involve more than just a phone call and a note on file...

I worked until very recently for a mortgage provider and can assure you that this happens regularly and indeed a note on the file is all that is needed.

dunstonh

It is a failure of planning but as mentioned higher up, this is very common. As long as the difference is not too extreme.

Say you start your original mortgage and endowment in January. You move house in March and the new mortgage has March as the end month. You may remortgage several times using different months too. Ideally, you should always set the new mortgage up to expire in the 12 months AFTER the maturity date of the endowment. However, some people forget to look at the maturity date or just remember the year and they go out of sync the wrong way.

So, its less than 12 months, no issue. If it is really out of sync by much more than that, then you are potentially looking at the lender asking a few more questions to check affordability and that you do actually have an endowment but thats about it.

B_G_B

I had this happen to me nearly 4 years ago, just after the new MMR rules came in.
Wasn’t a problem and there was no fee, but I did have to go through the MMR process, although in my case it was just a box ticking process. They also wanted a copy of latest endowment statement. This was with Woolwich (Barclays).

Tamarmaid

Thanks everyone. Finally managed to speak to someone, and it was all sorted within 10 minutes. Theyve just put a note on the account, nothing else needed. :T