Wednesday, March 28, 2012

Under pressure..

Up to 360,000 families may be forced to sell homes this year as endowment policies fail to deliver

Up to 360,000 families may be forced to sell homes this year as endowment policies fail to deliver

Posted by happy mondays @ 07:48 AM (1431 views)
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4 thoughts on “Under pressure..

  • mark wadsworth says:

    Use of the word “forced” tells us where their sympathies lie. Nobody is ever “forced” to pay rent or “forced” to buy a house in the Mail.

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  • IIRC 1987 was the peak year – or nearly so – for the endowment mortgage mania..

    ..it sounded far too good to be true at the time, and I’m glad I didn’t buy into it..

    There are, however, a lot of people getting increasingly stuffed by this – those who bought in ’85 or ’86 have had a rather better payout against a generally lower debt. Those reaching maturity this year are often having to deal with a £50k shortfall – or worse, and for those on the edge of retirement, that may well make them feel obligated to downsize.

    The headline of course is a nonsense..

    – 360k policies maturing this year – maybe a third of the policyholders have already made contingency plans, and another third can finance their shortfall without great drama.

    The remaining third have a problem, of whom maybe half will solve it by downsizing – so perhaps 60k properties may find there way onto the market as a result of some degree of distress..

    However, given the very thin market, 5k properties a month being force-fed into the market is far from insignificant, especially as these will be people downsizing in a market where few can currently contemplate upsizing.

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  • More garbage in the Mail – the insurers have for years been sending people shortfall letters with idiot proof wording and a traffic light system ie RED ALERT this plan is not on target to repay what you owe at the end of the term of your loan please make alternative arrangements (or similar wording).

    If you strip out the link to a mortgage a lot of these plans actually represented a very good long term savings scheme – I know this to be true as I had one !

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  • I know nothing, I also know a couple in this position who are getting/have been spanked to the point they are considering bankruptcy as an option.

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