HELP~mortgage ended shortfall on endowment

[jen123]

Hi I would be grateful for any advice. my mortgage with santander has come to an end and i have a shortfall of 40000. I work full time have no arrears. I can continue with payments but will they want to repossess for outstandnig balance.

[citizenB]

I believe quite a few people were left with shortfalls due to the poor performance of their endowment policies.

 

If you are in a position to continue with the payments, I think the bank should show a little compassion. I have sent out some S.O.S for you - it might not be until later in the day that someone responds because most of the advisors in this section have day jobs.

[citizenB]

Have you spoken to the bank about this at all ? Would you be able to increase the payments in order to reduce the shortfall quicker.

 

Do you believe you have been the victim of Endowment mis selling ?

[jen123]

thanks for your reply

 

 

'spoken to santander they have given 3 months for me to get advice on what to do.

 

 

Thinking back i believe i been misold as i took an endowment before i had a mortgage on advice from our insurance man, who in those days, came to the house to collect payments on other policies,

that i could start paying a towards a mortgage and at the end have a big lump sum

 

I can increase payments but what would they consider a reasonable time to pay it back

[honeybee13]

I can increase payments but what would they consider a reasonable time to pay it back

 

Hello again. I think that might be something you need to ask them.

 

Here's a link to the CAB on endowment shortfalls. Have you received letters from the endowment provider telling you how the policy was doing? I thought they had to let you know if there was a problem.

 

http://www.adviceguide.org.uk/england/housing_e/faq_index_housing/faq_housing_endowment_mortgage_worries.htm

 

You might also want to google the Money Advice Service advice on endowment mortgages and the Financial Ombudsman on endowment mis-selling. They have factsheets that look informative.

 

HB

Edited February 21, 2014 by honeybee13

[jen123]

Hello again honey beei. would receive a yearly letter but to be honest didnt really pay much attention to it as i was more concerned with keping up repaymrnts. stupid thing to do but hindsight is a wonderful thing

Edited February 21, 2014 by jen123

[citizenB]

I can increase payments but what would they consider a reasonable time to pay it back

 

I have had a look round the internet and some banks have been good enough to allow up to 5-7 years to repay shortfalls - but some have wanted their money within 1 - 2 year. I guess each situation is dealt with specifically.

 

What is your age (how long will you be in employment). How much would you be able to increase the payments to ? You have of course just been paying interest. I imagine they would want a reasonable increase. You need to remember that interest will be added to the shortfall as well.

 

Perhaps do a little bit of math yourself.. check what is the maximum you would be able to afford - then divide that into the shortfall figure and see what you come up with.

 

I do think you need to look at whether you were mis sold or not. You might have to send a Subject Access Request to the company that sold the Endowment.

 

They should have sent you an update every year which told you how your Endowment was doing and whether it would cover your mortgage sum.

[theoldrouge]

you could also look into a remortgage, certain building societies will consider rmortgages up to the age of 87:-)if you can prove sufficient income. Also if old like me you could consider equity release dependant on your circumstances

[Lea_HTH]

The sensible - and very easy thing to do if you are in employment with a reasonable credit score, is to take out another mortgage. Not ideal, but definitely the easiest thing to do and Santander can assist you with this.

 

The alternative is to ask them what the maximum period is that they will allow you to repay the shortfall over (often with Santander it is 2 years - but you do need to check), and then you'll need to work out whether you can afford it, as they will obviously add interest to the 40k too. As a ballpark figure, you're probably looking at around £1800 a month to repay that in 2 years...which is why you can see why the best advice is to take out another mortgage.

 

As regards misselling of your endowment - that is probably a boat long missed as Santander (as other lenders) sent out letters to those with insurance based mortgages asking them to check that their policies would not be leaving shortfalls - and in fact, in the last few years of the mortgage, those letters come more frequently.

[jen123]

old rouge you made me smile im sure young at heart

 

Thanks to all for advice

 

 

,from the advice in earlier post i phoned santander to ask how long i would have to repay

.and this phonecall was more reassuring than the lady i spoke to the other day,

 

 

she was very fast speaking,

call center attitude

just didnt seem to care and

 

 

i felt like she was fishing for information that they coud use later

trying to get me to do an expenditure over the phone whichi i wouldnt do as i felt it could bite me in the bum later.

 

today i spoke to a nice young chap and he tried to reassure me that they wil try to come to a resolution first before any proceedings.

and told him i wasnt happy doing

i.e over the phone so has put account on hold for 2 weeks

so he can send me the form to fill n at my own time and will go from there9

 

I am 48 and my job is quite secure

pay not fantastic but could afford 660 a month.

 

 

kids are now 21( studying but taking a job to help) and 16.

 

credit score not great

ccj 4 years ago settled

no other debts.

cant remortgage will explain late rjust hoping that santander will give time to pay

 

mortgage was taken with my sister.

2 years into mortgage she married and had a baby

moved away

interest were very high and

they struggled with payment

left went aboard saying it was mine and wanted nothing to do with it.

 

 

20 years later she has paid off her own home abroad

and now is looking for payout from this house

now its no longer in negative equity.

 

 

This has been my family home for over 40 years and i would like to stay here.

 

 

im hoping that if santander allow me more time to pay I hope to come to an agreement with her to let me pay her after the shortfall is paid.

[jen123]

Hi just wondering if anyone can give me some advice on what to do.

 

 

I applied for a mortgage to pay off the arrears

 

 

I was given £35k subject to my sister coming of the deeds.

 

 

at the start of the process she wanted £50k which we agreed i would pay her after i cleared the arrears,

 

 

i would re mortgage and given other assurance it would be paid.

 

she has now changed her mind and want £160k half the value of the house which i cant afford.

 

 

It has now put me in the position to sell before repossession

 

 

is there anything i can do or do i just have to suck it up

[jen123]

I would be grateful for any advice.I tried to sell a few years back to resolve the shortfall, at that time the house was of lower value and my sister and her husband wanted £30.000. When i had a buyer at the last minute they increased what they wanted by £20.000, which then with younger children at the time I could not afford,As i had moved out i had to move back into the house which the whole process left me with debts like council tax arrears.

I just feel very frustrated any time i try to resolve the problem they put a stop to it . What she wants to do is to stay on the mortgage for another 10 years and then she said she will make a decision then.

I want to resolve this now as have not been feeling to great( which she knows) and put off going to doctors until I secured mortgage and insurance. I went to the doctors and within two weeks was having a biopsy, I'm waiting on results and while Im writing this the hospital have phoned asked me to come for a scan. My biggest fear and I have said this to her over the years is that if anything happens to me because its a joint mortgage all will go to her my children will lose their home and security.

I just feel its so unfair they lived here for only 2 of the 25years but can now call the shots on how and where i should live