We have a DMP with Payplan and hope to be finished by April 2013.Our mortgage with Santander is due to finish in August 2013. Our mortgage is a mixture of 2 endowments and 1 top up of capital and interest. Both of our endowments are failing badly and we have a maximum potential shortfall of 20K.
We are hoping that we can extend the term of our mortgage by a couple of years so that we can repay this shortfall - our DMP will be finished so in theory we should be able to finish in about 6 months!
I made a preliminary phone call the other weekand was told we could switch to a capital and interest mortgage on the whole amount owing - over 10 or 15 years. When I asked about the endowments I was told I could cash them in or keep them going then pay them into the "pot".
My husband and I are now in our early 50s so do not want to be tied in for 10 more years unless we have to.
I am going to speak to Santander again today ,but in the meantime has anyone any advice for us?
No idea there scaredycat. If you let the endowments run their course, could you not just remortgage for the shortfall?
Hopefully one of the experts can help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thank you Kallis3 , that is what we thought they would say! Our worry is that our credit rating is shot though - as it takes 5 or 6 years to "resolve" even though we will be debt free. We are currently putting almost 3K a month into our DMP - as well as paying our mortgage and endowments ( £400 - ish a month) so thinking about an extra year to repay in full seems very logical to us.
Get some advice from a reputable IFA before making any investment decisions for the future. With the amount of disposable income you currently have available there ought to be a number of options worth considering.