Advice needed re. mortgage endowment shortfall

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scaredycat

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Post by scaredycat » Tue Aug 31, 2010 8:03 am
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?
 
 

kallis3

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Post by kallis3 » Tue Aug 31, 2010 8:23 am
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.
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scaredycat

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Post by scaredycat » Tue Aug 31, 2010 10:19 am
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.
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 31, 2010 10:25 pm
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.
Regards, Melanie Giles, Insolvency Practitioner
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