Endowment due to mature after mortgage redemption date

ProFaceMKIII

Hi,
We have a part repayment/part endowment mortgage. The mortgage redemption date is Jan 2022 but after checking through some paperwork we have recently realised that the endowment attached to this mortgage isn't due to mature until August 2024. We bought the endowment with our mortgage for a previous property but when we bought the current property and a new mortgage it looks like we only set up the mortgage for 20 years (taking it up to Jan 2022). With the benefit of hindsight it looks glaringly obvious but at the time we obviously just didn't appreciate the difference between the mortgage term end date and the endowment maturity date. The question is (because I honestly can't remember what was discussed at the time) when the mortgage offer was made should the building society have checked that we had a plan in place to repay the endowment part at the time the mortgage was due to finish and thus have the end date as August 2022 or is the onus solely on the customer??
Obviously we could cash in the endowment early to pay off part of the mortgage but may lose bonuses cashing it in early.
I'd be grateful for any advice anyone is able to give before I speak to our mortgage provider. Many thanks.

[Deleted User]

It's your responsibility to know how and when you intend to redeem the mortgage.

Speak to them sooner rather than later - it may be easier to simply extend the mortgage.

ProFaceMKIII

Deleted_User said:

It's your responsibility to know how and when you intend to redeem the mortgage.

Speak to them sooner rather than later - it may be easier to simply extend the mortgage.

Thanks for your very speedy response, much appreciated. That makes sense, I'll make arrangements with the mortgage provider to see what we can sort out. I'm more annoyed with myself that we didn't set it up correctly in the first place now, oh well, benefit of hindsight and all that!

dunstonh

Most lenders will be happy to extend the mortgage for a few years on the amount allocated to the endowment as long as you are not in arrears of have missed payments.

The question is (because I honestly can't remember what was discussed at the time) when the mortgage offer was made should the building society have checked that we had a plan in place to repay the endowment part at the time the mortgage was due to finish and thus have the end date as August 2022 or is the onus solely on the customer??

Yes, the onus is on you.

[Deleted User]

If you got your mortgage prior to around 2010 ish - interest only mortgages were handed out like confetti and lenders never checked if repayment vehicles were in place