Endowment shortfall

[MrsD]

I just thought this should be made public as it was something that worried me to death for a very long time.

Our original mortgage was covered by a couple of endowment policies which went tits up quite a few years ago. I cashed them and paid of a tiny bit of mortgage and some high interest credit card debt (if I had known then what I know now.) I then changed as much as I could afford to repayment and tried really hard to pay every extra penny to the still interest only part, while knowing that it was due to be paid off this year. Given our less than perfect credit records this worried me constantly, as I knew eventually I was going to have to bite the bullet, phone em and change the terms. well guys the time came this week, I phoned, they extended the whole mortgage for another 8 years, kept my spectacularly low interest rate, didn't charge a fee and all confirmed and sorted within the week and took one phonecall. I am not a fan of banks and I know that the government pushes them to to this because of endowment miselling but I googled this situation for ages and had difficulty coming up with a good news story. So this is the good news story!

[garlok]

Re: Endowment shortfall

Well done Mrs D.

We had fallen into the endowment trap a number of years ago with Legal and General who finally agreed to my mathematics. Once their actuaries had conceded the figures thay chnged it all over pretty datned quick as this is a real embarrassment to them.

I would urge anyone who has an endowment mortgage to check it very thoroughly as they all work the fiddle of reducing the reversionary bonus (the one they have to pay) and increasing the terminal bonus which the defintiely are NOT going to pay.

We got one thrid more than the policy was worth if we took out a straight repayment with them. thats was 10 years ago.

regards
Garlok

[PlanB]

Re: Endowment shortfall

That's wonderful news It seems the lender didn't re-underwrite you or run a credit check which is a blessing because with all my defaults I know I'd fail that test second time around. How did they process this for you? Was it a legal document which simply said something like "the original loan will be extended on the same Ts & Cs for a further 8 years" ?

[MrsD]

Re: Endowment shortfall

That's the point, they can't have run a credit check, cos between us we've got 22 defaults!! hence my worrying!
We just got a letter saying that they've changed out mortgage payments due to an extended term, voila!
We have never defaulted on the mortgage, its always been up to date and in actual fact I've always paid more than the payment. Don't know if this affected the way its been handled. have to say after the phone call, I was incredulous, I just could not believe it was that easy.....................

[PlanB]

Re: Endowment shortfall

I want your lender ! They sensibly based their decision on your excellant payment record and the probable fact that you're a spring chicken Buy-to-Let mortgages run until your 75 yrs old as a rule but my residential mortgage expires when they think I'll expire or stop having the capacity to earn at 65, but they couldn't be more wrong with most folk working until 70 and beyond these days

[MrsD]

Re: Endowment shortfall

we ain't no spring chickens, the length of time they've extended it is until we retire, they still work on the basisi that you've got to retire at 65.

[Never-In-Doubt]

Re: Endowment shortfall

can we ask who this mortgage lender is please?

I know our shitty G-Mac cum MAS #5 thing is not that flexible

[MrsD]

Re: Endowment shortfall

If.com

[Never-In-Doubt]

Re: Endowment shortfall

If.com

[PlanB]

Re: Endowment shortfall

can we ask who this mortgage lender is please?

I know our shitty G-Mac cum MAS #5 thing is not that flexible

Funny you should say that Niddy. I had a problem with Mortgage Agency Services over porting (they refused despite the GMAC KFI saying ok). I escalated my complaint to the Britannia Building Society (who own MAS) and solved the problem with one fierce letter That's the only thing to do with these annoying closed book lenders who won't acknowledge let alone understand the original product

[confused76]

Re: Endowment shortfall

i'm relieved to hear they've extended the terms Mrs D, must be a weight off your shoulders

[Never-In-Doubt]

Re: Endowment shortfall

Funny you should say that Niddy. I had a problem with Mortgage Agency Services over porting (they refused despite the GMAC KFI saying ok). I escalated my complaint to the Britannia Building Society (who own MAS) and solved the problem with one fierce letter That's the only thing to do with these annoying closed book lenders who won't acknowledge let alone understand the original product

Well something new to me with them here, I pay a lot into the mortgage, I mean like £1300p/m and they want paying on 1st of the month, I pay on 25th as I always did with GMAC which is, lets not forget whom we took the mortgage with, however MAS seem to think because I pay on 25th and not the first, that they can charge me approximately £100 per month for paying "late".

They are trying to charge me a percentage over the amount we pay times the days late

Is this a new rule to mortgages now is it that they can change your date and charge you for the privilege?

Unlucky for them, I have used it as a savings account cos the BOE rate was only what, 0-1% yet the rate I will claim back is at 8% so for 4 years at £100 p/m x 8% interest =

Anyway, I will do this reclaim shortly but for now I just laugh at them cos they're nobody to me - they called me and said "you're late with your payments" - I said, really? According to my agreement with GMAC it says I need to pay by 25th, so I do. Who are you again and where is my copy of assignment?" - they then went quiet.

Shame.....

[PlanB]

Re: Endowment shortfall

Well something new to me with them here, I pay a lot into the mortgage, I mean like £1300p/m and they want paying on 1st of the month, I pay on 25th as I always did with GMAC which is, lets not forget whom we took the mortgage with, however MAS seem to think because I pay on 25th and not the first, that they can charge me approximately £100 per month for paying "late".

They are trying to charge me a percentage over the amount we pay times the days late

Is this a new rule to mortgages now is it that they can change your date and charge you for the privilege?

Unlucky for them, I have used it as a savings account cos the BOE rate was only what, 0-1% yet the rate I will claim back is at 8% so for 4 years at £100 p/m x 8% interest =

Anyway, I will do this reclaim shortly but for now I just laugh at them cos they're nobody to me - they called me and said "you're late with your payments" - I said, really? According to my agreement with GMAC it says I need to pay by 25th, so I do. Who are you again and where is my copy of assignment?" - they then went quiet.

Shame.....

I look forward to a new thread on this subject please. I have a Chelsea mortgage which is a tracker at 1% below BBR so you've got me thinking here about the "savings account" approach Chelsea was then bought by Yorkshire BS (to avoid bankruptcy) and they now charge me extra interest for paying on 28th not 15th of the month

Sorry to get in the way of your topic Mrs D but Niddy has triggered something that's been bugging me for some time.

Is if.com Intelligent Finance of Scotland? Is that combination really possible ? Better log off now

[Never-In-Doubt]

Re: Endowment shortfall

Is if.com Intelligent Finance of Scotland? Is that really possible ? Better log off now

Its HBOS and yea, run wumman

[PriorityOne]

Re: Endowment shortfall

I also have an endowment with Legal & General but no mortgage now; due to being left a considerable amount of money after my mum and step-dad passed away within months of each other.

L & G write to me periodically to inform me that there won't be enough funds to repay a mortgage but if the endowment runs to the end of its term (7 years left) and there's less than what was originally forecast, they will pay an additional amount called a "promise to policy-holders" to top it up..... so, I'm hanging on for that.... :-)

The amount paid would be considerably short if it was going to pay any mortgage off, if I still had the mortgage.... and I wasn't able to go down the mis-selling route because to be honest, the broker didn't mis-sell it to me. I was so desperate to get a mortgage at the time (long story) that I was grateful for all the help I could get.... and the guy who put this together really bent over backwards to help me.

You don't get that often in the finance industry..... :-)