Endowment due to mature this year.

gorka01

I have an endowment policy that is due to mature this year.  I have already been told that there is a shortfall on the initial mortgage sum, but with the economy in freefall the shortfall has doubled.  I have asked if I can extend the policy but been told that this is not possible.  I know there is help out there for mortgage payments holidays but can anyone advise me if they know if I have any other option than to just hope the economy picks up in the next couple of months 

Thrugelmir

Have you spoken to your lender about extending the mortgage term? 

gorka01

Thanks....that will have to be my next step.  I was just hoping there was a way of me still being able to finish my mortgage this year.

Thrugelmir

One hope is that the endowment policy makes a recovery in value. Though not something that should be banked on. Best to plan for the worst case scenario. As then you can overpay and reduce the mortgage balance. Correspondingly the term. 
There's nothing to stop you overpaying now if it's affordable. As will all help your cause. 

dunstonh

You cannot extend endowments as an amendment to the term would break the tax qualifying rules.   Options are either to
- take the maturity and reinvest and wait.
-Take the maturity, pay off what you can and convert the rest to repayment basis
-Start overpaying now
-combination of above.

lenders are normally open to extending mortgages by the amount of the shortfall for up to 5 years if your payment history is good.

Old_Lifer

We have  in the last couple of weeks  had   a number of similar posts  from members with  endowment concerns.

If you scroll back about 9 or 10 pages on the 'Savings & Investments'   and  the  'Mortgage & Endowments'  boards,  you will find a range of views from Forum members which may  be of help to you.

matt1171

Hi
I have obtained a value for my mortgage endowment policy today that is due to mature in October this year, obviously I was concerned that with the fall in the markets this would have impacted the endowment value adversely. Whilst there is still a shortfall in the value of the endowment compared with the mortgage loan that it needs to cover, it doesn't appear to be too badly impacted. Can anyone suggest whether it would be best to cash in the endowment now (6 months early) or keep it going until October 2020 when it matures and hope that the markets don't downturn still further? I can contact the endowment company at will to get an up to date value.

dunstonh

 Can anyone suggest whether it would be best to cash in the endowment now (6 months early) or keep it going until October 2020 when it matures and hope that the markets don't downturn still further?

Crystal ball job.

TrickyDicky101

Does the insurance company guarantee the surrender value they are quoting?  Are you sure there will not be a Market Value Reduction applied?

Old_Lifer

If you scroll back  a couple of weeks  on the  'Savings  & Investments'   and  'Mortgage  & Endowment Boards   (about 10 or 12 pages on each)  you will find a number of similar  threads   and will find on these a range of views from various  Forum members.

These recent threads should be of help to you,    otherwise,  we are all repeating ourselves.