Advice Needed - Serious Mortgage Problem

Larrio

A number of years ago when my wife was out of work our debts got out of control and i got a couple of CCJ's. While trying to pay our bills and keep the wolves from the door, I foolishly stopped paying my endowment with a view of catching up when things got better. After paying of my CCJ's and a number of other bills which were a priority, I am left with a much improved situation where we can now just about manage. I still have the usual overdraft and a few loans but am able to manage them. However for some reason I closely checked my Mortgage statement last week and to my horror, found that the term ends next Feb 2009. They will expect my endowments to mature and pay of the balance of £50,000. The truth is I forgot to reinstate my endowments and am going to be left with a huge shortfall. With my bad credit history what the hell am I going to do. There is a charge on the house from a loan company which is still being payed off and of course the Mortgage company will have one too. My house is worth around £150,000 and I am going to need a loan to bridge the gap of around £30,000 which will be the shortfall. I am really worried that I may lose my house or have to sell it to meet the shortfall because I can't imagine anyone lending me the money. Can anyone give me some advice as to what I should do please.
Thanks,
Larry

silvercar

You have two options. Either extend the mortgage on interest only while you come up with a solution to fund the loan or move to a repayment mortgage.

What is the status of your endowments? Did you cash them in or make them paid up? What is their maturity value (presuming you still have them). At the point when they will mature you will be able to pay off a chunk of your mortgage. If you then keep your monthly payments at their current level, you will be repaying some of the capital each month and so will eventually clear your mortgage.

Don't panic about this, lots of people will find their endowments maturing at a lower value than their outstanding mortgage, you just need to work out how to address it.

With a poor credit rating it may be best to stay with your current lender, but if your CCJs and poor ratings have fallen off your current credit rating you will have the option of searching the best mortgage rate again.

poppy10_2

You won't lose your home, you just need to get a new mortgage. to cover the outstanding amount.