mortgage

[Connemmara]

I have been getting RED alerts as tothe fact my endowments in 2013 will not fully pay my mortgage. I have another 4 years to go until 2013 - my plan is that I will cash the endowments for what they will be worth at that time and I take another mortgage for the remainder of what I owe. Does anybody know would a building society give me a mortgage when I am 63. I know it is a long way off but I do worry about it.

[factor-fiction]

I agree with Zacmaster. With interest rates so low at present now is a good time to overpay on your monthly mortage payments if your mortgage company allows it.
As things stand at present, how much of a shortfall will there be if you wait until you are 63?

[Connemmara]

thanks for your answers

[Hymie]

With many people finding themselves in your position, lenders are having to accept that debts will be outstanding after the debtors 65th birthday. A colleague of mine (in a similar position to you) has recently come to an agreement with regards paying off his mortgage until he reaches 70.

He was required to sign paperwork acknowledging that the debt would require paying after his normal retirement date. The reason being to ensure he does not claim (at some later date) that the lender did not take into account he would be retired and having to pay the debt – arguing he should not pay anything after his 65th birthday.

You could always consider selling up once your endowment policy matures and downsizing or move to a cheaper area.

I would not worry too much in you position – come the date of maturity you should have considerable equity in your property, making it pretty certain that someone will offer you some sort of loan to allow you to continue to live in your home.

[Bonawe]

Hi Connemmara,
A few questions need clarified here, when did you start getting the "red letter's"? Most companies were dealing with this some years ago and you should have had a window of opportunity to get back to the company with options they may have provided for you. Were you aware of the risk involved in having an endowment to repay your mortgage? Were you aware that the endowment may not pay the mortgage in full?

There are companies that will offer you a part interest and part capital repayment giving your circumstances and the fact that the endowment may not pay the mortgage, and this can be done to after normal retirement age, provided you have the income to meet the repayments, so it will depend on your income, the amount outstanding and the value of the property. You may also feel that you were unaware of the risk involved when you took out the endowment and possibly ask for the plan to be reviewed.

I have just registered on this site and I am not sure if you can get access to my Email as this is my first ever response, but I hope this helps as I am a Financial Adviser. I would normally leave my contact details but I am unsure whether this is wise on this site as I said I am new.