Tragic... Sounds real bad. Endowment mortgages :(

MWT

https://forums.moneysavingexpert.com/discussion/comment/82147789#Comment_82147789

We are pretty much at the end of the 25 year endowment products now, but I seem to recall that although much less common, there were 30 year products available.

There were also some 30 year mortgages taken with a 25 year endowment so could be a few years yet before we are completely at the end of the endowment issues.

That still leaves scope for similar problems with the pre-2008 interest-only mortgages though…

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82147831#Comment_82147831

30 year mortgage with a 25 year endowment sounds insane - unless the endowment had to be used against the mortgage instead of being handed over as cash. Otherwise, what was to stop some people enjoying their windfall and worrying about the mortgage later?

There have already been some sob stories about interest only mortgages in the papers..."We never thought the bank would evict a couple of pensioners..." and "We planned to pay off the mortgage (a 3 bed semi) and buy a smaller property by downsizing". And the one from a few years ago.."We thought we owned the house when we paid the final mortgage payment" From a couple who thought that 'interest only' was the same as 'interest free'.

Sadly, expect to see similar stories over the next few years.

MWT

In those cases the endowment policy was usually assigned to the lender to avoid that risk…

sheramber

we had three low cost endowment policies covering the original mortgage and two subsequent additions, taken out late 70’s and early 80’s.

All three paid out more than the existing loan they covered.

silvercar

a mortgage longer than the endowment often arises where people move and keep the endowment running. They then take out a new 30 yr mortgage at the time of purchase. It can work well if you use the endowment maturing to reduce the mortgage then make the monthly repayments higher as you won’t have the endowment to pay.

Typhoon2000

From his update video, it seems this is nothing to with any potential shortfall in his endowment as his mortgage still has another year to run, but from £27K or so arrears that have built up ( no explanation given). The court has given him 28 days to pay his arrears or face foreclosure.

So it appears to have nothing to do with endowments or Lloyds Bank in particular.

ACG

https://forums.moneysavingexpert.com/discussion/6684205/tragic-sounds-real-bad-endowment-mortgages

Your leaving Lloyds despite being in receipt of half the story (note I did not say facts)…

https://forums.moneysavingexpert.com/discussion/comment/82146444#Comment_82146444

Do you often make decisions based on half a story?

Watch out for those contrails when you get to the end of earth.

Part of being an adult is to not believe everything you are told.

QrizB

Do you often make decisions based on half a story?

I make decisions based on the information I have at the time How about you?

Watch out for those contrails when you get to the end of earth.

I have honestly no idea what you're referring to here. Have you confused me with someone else?