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Endowment Mortgage payback time

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I know two people who 25 years ago took out endowment mortgages. The bank have now informed them there is a shortfall of over £30k. So is an interest only mortgage better or do people still believe in endowment mortgages?

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If the shortfall is £ 30k it must have been a substantial mortgage to have been taken out 25 years ago.

There is no tax advantage in endowment mortgages. LAPR Life assurance premium relief was abolished years ago which was a distinct benefit when there was tax relief on the endowment premiums.

I trust

the life company had sent the couple warning letters of the impending shortfall.

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I started mortgage (£6,750) with Scottish Amicable in 1984, matured in 1999 with, I think, 1.1K surplus

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An endowment mortgage is an interest only mortgage.

 

They should have been getting letters for several years from the endowment provider regarding the possible shortfall.

 

They should also have received correspondence from the lender encouraging them to make sure that they could redeem the mortgage.

 

If they cannot repay the full amount they should be talking to the lender as a matter of urgency.

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If the shortfall is £ 30k it must have been a substantial mortgage to have been taken out 25 years ago.

 

One bedroom flats in London.

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My first mortgage was an endowment one, and I got letters regarding a potential shortfall four or five years into it. I was also given the option to convert to a repayment mortgage which I would have taken, had I not been selling up and buying a house with my future wife. I then cashed in the endowment and claimed compensation on it for misselling.

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I know two people who 25 years ago took out endowment mortgages. The bank have now informed them there is a shortfall of over £30k. So is an interest only mortgage better or do people still believe in endowment mortgages?

 

They havent offered them for some time. I believe they are unlawful. Endowments were never really better and they were based on hyped up projections on stock market performance of the 80s.

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They havent offered them for some time. I believe they are unlawful. Endowments were never really better and they were based on hyped up projections on stock market performance of the 80s.

No, they're not unlawful; and I think that they're still available- but with lots of extra warnings.

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