Mortgage/endowment/where can I get a loan - advice required
Discussion
Long story short.
Endowment mortgage is due soon.
We have 2 endowments. Somehow (don’t ask) one matures 6 months after the mortgage is due, the other matures 12 months after that.
Even if they matured at the right time they wouldn't cover the mortgage.
Because we are both fairly newly self employed in different businesses on paper we have little income - with minimal earnings and with no disposable income it is seemingly difficult, if not impossible, to extend our mortgage or get a new mortgage.
Our plan is to down size.
Our 4 bed house would sell for £280k
Pay back the mortgage £90k – leaves £190k
Realistically a new 2 bed property will cost £195k – A short fall of £5K
Cost of Fees, removals, etc, etc – another £5k
Total shortfall £10k
The first endowment should payout £30k (it was originally for £54k) in six months time.
So the question is ....
Where would be the best place to apply for a £10k loan on the strength that we will have a £30k endowment pay out in 6 months time?......
Or ......
Is there another viable option?
Endowment mortgage is due soon.
We have 2 endowments. Somehow (don’t ask) one matures 6 months after the mortgage is due, the other matures 12 months after that.
Even if they matured at the right time they wouldn't cover the mortgage.
Because we are both fairly newly self employed in different businesses on paper we have little income - with minimal earnings and with no disposable income it is seemingly difficult, if not impossible, to extend our mortgage or get a new mortgage.
Our plan is to down size.
Our 4 bed house would sell for £280k
Pay back the mortgage £90k – leaves £190k
Realistically a new 2 bed property will cost £195k – A short fall of £5K
Cost of Fees, removals, etc, etc – another £5k
Total shortfall £10k
The first endowment should payout £30k (it was originally for £54k) in six months time.
So the question is ....
Where would be the best place to apply for a £10k loan on the strength that we will have a £30k endowment pay out in 6 months time?......
Or ......
Is there another viable option?
Edited by Squiggs on Thursday 21st March 13:15
No one is going to lend to you based on an endowment maturing in six months. They are underwritten on your credit score and your ability to repay the monthlies via your income.
No income, no loan.
Have you fully exhausted your mortgage options? If your mortgage is only £90k then your income figures do not need to be that high.......circa £18k between you......
No income, no loan.
Have you fully exhausted your mortgage options? If your mortgage is only £90k then your income figures do not need to be that high.......circa £18k between you......
Edited by Sarnie on Thursday 21st March 13:40
Squiggs said:
Endowment mortgage is due soon.
We have 2 endowments. Somehow (don’t ask) one matures 6 months after the mortgage is due, the other matures 12 months after that.
Even if they matured at the right time they wouldn't cover the mortgage.
If they were sold to you as a means to pay off the mortgage at the end of its term, then you have very good grounds for a mis-selling claim (but was there a cut off date some years back for these claims?).We have 2 endowments. Somehow (don’t ask) one matures 6 months after the mortgage is due, the other matures 12 months after that.
Even if they matured at the right time they wouldn't cover the mortgage.
Edited by Squiggs on Thursday 21st March 13:15
Sarnie said:
In my opinion, you've got more chance of getting a longer mortgage (secured lending) than you have getting a loan (unsecured lending) against a maturing endowment.
I advised a relative recently along similar lines, the mortgage provider extended the term, roughly 12mths. Everything went to plan and they paid the mortgage off. Both relatives are retired in there 60s, little income, no chance of getting a loan.As long as you can cover the mortgage repayment, let them know whats going on and I'm sure they will go with it.
We have spoken to our mortgage provider. We got a letter from them " ... your mortgage ends in 6 months give us ring ... ".
We did - explained the situation and got told 'That's ok we'll simply extend your mortgage for you. When the time arises give us call'. Which was kind of what we were expecting having made payments regularly for almost 25 years.
A month on and we got the same letter - ignored it for a couple of weeks thinking it's a duplicate/clerical error but then thought we should call them again.
Told them we'd called them a while back and that we had been told 'That's ok we'll simply extend your mortgage for you ...' only to be told 'Well that's wrong! whoever told you that was wrong! Sorry we can't extend your mortgage!'
We complained in writing very strongly and the reply was 'sorry here's £20 for the inconvenience caused by the misinformation given to you when you first called.'
!!!!!!!!!!!!!!!!!!!!!!!!!!!
We now have about 3 months to go.
We did - explained the situation and got told 'That's ok we'll simply extend your mortgage for you. When the time arises give us call'. Which was kind of what we were expecting having made payments regularly for almost 25 years.
A month on and we got the same letter - ignored it for a couple of weeks thinking it's a duplicate/clerical error but then thought we should call them again.
Told them we'd called them a while back and that we had been told 'That's ok we'll simply extend your mortgage for you ...' only to be told 'Well that's wrong! whoever told you that was wrong! Sorry we can't extend your mortgage!'
We complained in writing very strongly and the reply was 'sorry here's £20 for the inconvenience caused by the misinformation given to you when you first called.'
!!!!!!!!!!!!!!!!!!!!!!!!!!!
We now have about 3 months to go.
Have you got a buyer for your house? 12 weeks isn't long to get a house sold and cash in the bank?
Or, reading between the lines, are you going to PX it for a new build??
How old are you guys? If you want to consider getting a mortgage I'm pretty sure I know a few lenders who would enteratain it at that LTV, dependant on further details of course.....
Or, reading between the lines, are you going to PX it for a new build??
How old are you guys? If you want to consider getting a mortgage I'm pretty sure I know a few lenders who would enteratain it at that LTV, dependant on further details of course.....
Although you need to try and resolve this in an amicable way if this proves impossible you should ask your lender what they will do if they refuse to extend the term.
For example what are their options? Start repossession action, not a hope in hell (assuming you have a clean record). Imagine the scene at County Court? They would be accused of lack of forebearance as an absolute minimum, besides it would never get past their legal team.
Whatever you do you must maintain repayments.
The ideal solution would be to find cooperation with your lender and agree an extended term and conversion to repayment terms which you can afford for the shortfall.
Gut feeling tells me that your last conversation was with a poorly informed junior staff member, try again but ask for someone mre senior.
For example what are their options? Start repossession action, not a hope in hell (assuming you have a clean record). Imagine the scene at County Court? They would be accused of lack of forebearance as an absolute minimum, besides it would never get past their legal team.
Whatever you do you must maintain repayments.
The ideal solution would be to find cooperation with your lender and agree an extended term and conversion to repayment terms which you can afford for the shortfall.
Gut feeling tells me that your last conversation was with a poorly informed junior staff member, try again but ask for someone mre senior.
We don't want to move from the area. We put ours up for sale and within two weeks a couple round the corner with a two bed put an offer in (and at £20k under the correct asking price, for a quick sale' they'll get a bargin!) We like their place so it seems a good idea to try and 'swap'.
We don't really want to move to be honest but over the years we came to realise that the endowments would never make enough - and with one thing and another have never saved the shortfall.
We started off 25 years ago with an endowment mort and then after 9.5 years we moved. Some how our increased mortgage only got set up to run for further 15 years instead of 15.5. So whilst our endowment runs for 25 years our mortgage term is now only 24.5yrs (9.5 + 15 = 24.5)
Our second endowment was set up at the same time as we moved - but it seems a clerical error made it run for 16 years instead of 15.5 (9.5 + 16 = 25.5)
A few years back we made a claim about the miss-selling of our endowments but got no-where.
More recently we complained to our mortgage provider about the time somehow getting changed from 25 to 24.5yrs and were simply told 'you should have double checked before you signed'
And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
All of which has brought us to the problem outlined in the first post
We seem to be up a creek without a paddle.
We don't really want to move to be honest but over the years we came to realise that the endowments would never make enough - and with one thing and another have never saved the shortfall.
We started off 25 years ago with an endowment mort and then after 9.5 years we moved. Some how our increased mortgage only got set up to run for further 15 years instead of 15.5. So whilst our endowment runs for 25 years our mortgage term is now only 24.5yrs (9.5 + 15 = 24.5)
Our second endowment was set up at the same time as we moved - but it seems a clerical error made it run for 16 years instead of 15.5 (9.5 + 16 = 25.5)
A few years back we made a claim about the miss-selling of our endowments but got no-where.
More recently we complained to our mortgage provider about the time somehow getting changed from 25 to 24.5yrs and were simply told 'you should have double checked before you signed'
And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
All of which has brought us to the problem outlined in the first post
We seem to be up a creek without a paddle.
Edited by Squiggs on Friday 22 March 00:16
Squiggs said:
We don't want to move from the area. We put ours up for sale and within two weeks a couple round the corner with a two bed put an offer in (and at £20k under the correct asking price, for a quick sale' they'll get a bargin!) We like their place so it seems a good idea to try and 'swap'.
We don't really want to move to be honest but over the years we came to realise that the endowments would never make enough - and with one thing and another have never saved the shortfall.
We started off 25 years ago with an endowment mort and then after 9.5 years we moved. Some how our increased mortgage only got set up to run for further 15 years instead of 15.5. So whilst our endowment runs for 25 years our mortgage term is now only 24.5yrs (9.5 + 15 = 24.5)
Our second endowment was set up at the same time as we moved - but it seems a clerical error made it run for 16 years instead of 15.5 (9.5 + 16 = 25.5)
A few years back we made a claim about the miss-selling of our endowments but got no-where.
More recently we complained to our mortgage provider about the time somehow getting changed from 25 to 24.5yrs and were simply told 'you should have double checked before you signed'
And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
All of which has brought us to the problem outlined in the first post
We seem to be up a creek without a paddle.
If you actually don't want to sell up and want to stay in your house, PM me asap!We don't really want to move to be honest but over the years we came to realise that the endowments would never make enough - and with one thing and another have never saved the shortfall.
We started off 25 years ago with an endowment mort and then after 9.5 years we moved. Some how our increased mortgage only got set up to run for further 15 years instead of 15.5. So whilst our endowment runs for 25 years our mortgage term is now only 24.5yrs (9.5 + 15 = 24.5)
Our second endowment was set up at the same time as we moved - but it seems a clerical error made it run for 16 years instead of 15.5 (9.5 + 16 = 25.5)
A few years back we made a claim about the miss-selling of our endowments but got no-where.
More recently we complained to our mortgage provider about the time somehow getting changed from 25 to 24.5yrs and were simply told 'you should have double checked before you signed'
And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
All of which has brought us to the problem outlined in the first post
We seem to be up a creek without a paddle.
Edited by Squiggs on Friday 22 March 00:16
I'm pretty sure we could source you a mortgage over say 10 years, on a split basis of £80k on IO and £10k on repayment. Your £80k endowments clear the IO balance leaving the £10k repayment element over the ten year period, which would be circa £93 a month...............
Squiggs said:
More recently we complained to our mortgage provider about the time somehow getting changed from 25 to 24.5yrs and were simply told 'you should have double checked before you signed'
And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
In my previous post I suggested that the discrepancy in dates could be grounds for mis-selling.And we complained to the second endowment provider about it maturing in 16yrs rather than 15.5 and once again got told 'you should have double checked before you signed'.
Harsh but fair on both counts I guess?
Edited by Squiggs on Friday 22 March 00:16
I've just checked the responce to my Customer Complaint Report and although I had NEVER noticed (and hence didn't mention it in my complaint!) the fact that my mortgage term ended the July but the endowment didn't mature until the following December, the investigation team picked up on it themselves and gave the discrepancy as one of the reasons for upholding my complaint.
Gassing Station | Finance | Top of Page | What's New | My Stuff