End Of Plan Of Mortgage

[Connemmara]

Received a letter this am and they are asking (as briefly) as I can since it is coming to my paying off my mortgage in August and I guess getting me ready.

Since I have buckets of paper work gathered over the years what am I looking for - they have sent maturity form - now I found well rather than look through screeds and screeds - what shall I look for - is it the piece paper you receive once or twice year telling you what you have or is it 5 pages of planning review is that the actual plan

[woofgang]

connemara, I think your post has missed a bit. What are they asking for?

[Connemmara]

they are telling me how much they are going to pay by august 2012 taking into account ups and downs of investments. - also describing maturity value represents the value of the units relating to your plan. The value of the units is the number of units multiplied by the current plan and it goes on and on - now that is the just the letter I have received today. woof it would be too long to type it up.

[Connemmara]

sorry 2013

[Connemmara]

there is a maturity form to fill in in case you have lost the original plan document but I do think I have it - it reads Abbey National personal financial planning report etc would that be it.

[Connemmara]

don't worry woof - there is a page at the back which overtturns - you know just a form to fill in and the money will automatically will pay off mortgage - just have to find the other half as I co-owned my house in my day so have to look at that -but I guess they will send same perapheranalia. Thanks anyway

[wolf63]

Conne - sorry to smile at your post. You sound as if you are muttering away to yourself. :-)

I hope that you manage to get it all sorted - I managed to repay my mortgage when I was 40 and it is great not having to find the money each month.

[boxtops]

Conne, no idea as I have never had an investment mortgage. I do hope it's adequate to pay off the balance of your mortgage, do you know the figures? This is one reason why I never took an endowment mortgage either.

I agree with wolf - I have a vision of you muttering and throwing files of papers over your shoulder as you look for the right one! :-)

[Zacs-Master]

Abbey National were taken over by Santander in 2004.

[Connemmara]

god yous can be so right - was muttering at all the screeds and screeds of paperwork - why can you never find what you want and come across things you don't need. I never should have put the question on anyway it would have been too complicated and after all there is a maturity (end of) form at the back of the letter so I think will just have fill it in but I am awaiting another form from another company as I took out 2 endowments as I was very young and never knew what a mortgage was never mind an endowment anyway (ill-advised) by the mortgage adviser - big shortfalls on both which I have to cough up in August then GOODBYE did have a wee laugh tho

[Zacs-Master]

Box of frogs?

[woofgang]

oh the paperwork mutter....I know it well....yours has less swearing in it than mine or did you censor yourself?

[buildersmate]

Yes, basically the mortgage company is saying 'your mortgage is coming to an end in August and we know (or suspect) that the final value of your endowment policies will not cover the total sum outstanding on your interest-only mortgage. What is your plan?'

What they are looking for you to say is that you are paying the shortfall out of savings - which sounds to be what you intend doing. Just complete the form and send it back.

Some people whine-on about these endowment policies not delivering enough to cover the outstanding sum of the mortgage. But the simple fact is that with mortgage interest rates far lower over the last 10 years than those when the loans were taken out, if punters had used the excess from the reduced mortgage repayments to pay-off against the loan, they wouldn't have to make-up any shortfall from the endowment at the end of the term.

[ummmm]

Yeah but! we were told that not only would the endowment pay off the balance we'd also have cash at the end of it.

[buildersmate]

Yeah, but you weren't told the cost of repayment mortgage would be far lower than when you started either (due to reduced interest rates).

You can't expect to win on the swings AND win on the roundabouts too.

I repeat, if more people had had the wit to put the reducing amounts of mortgage repayment into early pay-off, they wouldn't have a problem at the end of the term. Instead of which, they blow the extra on some fancy holiday or new car because they feel more wealthy, then whine like heck when the endowment falls short. I blame the press for making a story out of nothing, as per usual.

[venator]

There was a big scandal some years ago over mis-selling of endowment mortgages, with many thousands of people, myself included, getting generous compensation. If you made a claim at the time and invested the compensation, you should be OK, I hope.

If not, it might be worth talking to a solicitor, although it'd probably far too late.

good luck!

[ummmm]

Lol...not all people do. We've put aside their predicted shortfall and more because they have been warning us for years.

When a financial advisor tells you that an endowment is the best option then not many people question that. Just because you're savvy on these matters, doesn't mean everyone else is.

I do agree with you though. We've known for years there will be a shortfall so either up your payments, or start saving. We chose to do the latter.