It might seem a stupid question...

madfrenchgirl

... but what is endowment? I have heard of it and tried to find out what itmeant on the Mortgages websites but cant find a definition...

I know I mihgt sound dumb, but better feeling stupid than being sorry.

Also, when you make overpayment, how is the interest recalculated?

And finally, is it still possible to find a dodgy place in real need of modernisation, the only places I can find are those that already have double glazing and central heating and other stuff, we dont want a modernised house, we want something that needs work!

Thx in advance!

Doozergirl

There are plenty of places out there in need of modernisation. Many go to auction, which can be a problem if you are buying with a mortgage asyou have to have surveys carried out before even bidding and thisis an expensive process if you don't win.

They do come up on high street agents books but those that are priced low are snapped up very quickly. You must look at your local property press each week and register on agents websites to be sent details of new properties. register in person if you like but my experience shows they rarely bother contacting you after they've handed you a pile of inappropriate details. You have to do all the legwork yourself. There's a lot to sift through and it has to be an ongoing process.

Don't know much about endowment mortgages, eept that they were extremely disappointing and aren't available anymore.

Daniel_B

Laymans terms - don't shoot me if I am incorrect, or take it as gospel!

Endowment mortgage, you only pay off the interest per month with one payment - ie the balance remains the same through out your term - be in 15, 20 or 25 years.

Simultaneously you pay every month into an endowment, this is invested in shares for you, and the hope/calculation is that at the end of your term, the endowment is worth as much if not more than your mortgage balance - the amount you originally borrowed.

if it's more, then you are quids in, if it's less.....

Dan

Twmble

madfrenchgirl wrote:

Also, when you make overpayment, how is the interest recalculated?

It depends on whether the interest is paid daily, monthly or annually, but this Overpayments Calculator gives a good idea how your mortgage is reduced with regular overpayments.

madfrenchgirl wrote:

And finally, is it still possible to find a dodgy place in real need of modernisation, the only places I can find are those that already have double glazing and central heating and other stuff, we dont want a modernised house, we want something that needs work!

When we were looking recently we found two houses that had old age pensioners living in them, both passed away and the houses were being sold on. Neither house had much modernisation - not even a kitchen or bathroom! One was totally untouched since about the 50s - round plug electricity sockets etc. Look around - they do pop up!

HTH

T

Happy_saver_4

madfrenchgirl wrote:

... but what is endowment? I have heard of it and tried to find out what itmeant on the Mortgages websites but cant find a definition...

I know I mihgt sound dumb, but better feeling stupid than being sorry.

Also, when you make overpayment, how is the interest recalculated?

And finally, is it still possible to find a dodgy place in real need of modernisation, the only places I can find are those that already have double glazing and central heating and other stuff, we dont want a modernised house, we want something that needs work!

Thx in advance!

To assist you here is the Endowment mortgage definition/explanation as Doozergirl said they were very disappointing (Nice to be right sometimes - I told all my clients not to bother with them!)

Regarding finding a piece of 'tat' to do up - you'll be very very lucky to get a good one direct from an EA. Nearly all EA's have their favourite Spec builders and Spec builders do try and become very friendly with EA's. Even offering to pay double fees on the resale! Obviously it's in the interest of the EA to have a no-nonsense cash buyer who will re-instruct him to sell the property after quick modernisation - the Speccer wins!.

However, all is not lost! Some vendors selling a tatty home (ex-tenanted?) want a higher price than a Spec builder will give and you ought to be able to outbid a Speccer at auction as he's looking to make a good quick profit and you want to make a home.

Good luck and when looking and don't forget;
"Omnia vinces perseverando" (perseverence conquers all)

Nikki

Unmodernised houses are still out there. We are in the process of selling and buying, we only want to live in a specific location and every house we looked at was in need of modernisation and only one was still being lived in. We too prefer the unmodernised. The house we are buying is empty and still has all the old bakerlite light switches and plug sockets, still has original fireplace in the living room. Can't wait to move in and get started!