I'm 55 with a £30,000 shortfall on my endowment backed mortgage. What are my options?

Posted on 10 May 2013 by Steve


Hi, my property's worth around £80,000 with an endowment shortfall of £30,000 due in May 2016. Who will give me a mortgage/borrow of £30,000 at age 55 in December 2013? I would appreciate any suggestions, or would equity release by my only option?

Steve,

This is an issue which is cropping  up more and more, however there are options for you to consider subject to what you can afford to pay each month and also when you plan to retire.

The first one would be to look to extend the term of the mortgage and transfer it onto a repayment basis, though the lenders affordability calculation would depend on your proposed retirement date.

Another alternative would be to put part of the loan on repayment with the balance still on interest only. You could then look to make overpayments on the interest only element as and when you are able to.

I think it would be worthwhile to go through your options with one of our consultants as soon as possible, to see what can be done. If you'd like to do so, then please let me know and I'll arrange for one of them to contact you.

Regards,

Alistair

contact@johncharcol.co.uk

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