Mortgage shortfalls
In the 1980s and 1990s interest only mortgages were fairly standard and were often run alongside an investment policy which was intended to grow sufficiently so that the mortgage would be repaid at the end of the term. These were known as endowment mortgages.
Due to the poor pay-out and the controversy around them it means endowment mortgages are no longer sold. However this has left thousands of people with endowment mortgages, many approaching retirement, who have no option but to sell their homes to repay their mortgages which are due to mature.
There are options depending on how sympathetic the lender is, namely switching to a repayment mortgage, downsizing to enable you to release enough mortgage to cover the shortfall or considering an equity release scheme. People finding themselves is such a situation are advised to seek advice and guidance from a financial adviser. Our property team are not financial experts and cannot provide any advice as to your options, however they are happy to discuss any legal requirements you may have and you should contact them directly at any of our offices in Petersfield, Haslemere, Liphook and Grayshott.
