What happens if you cannot pay off the endowment shortfall on mortgage?

[FIFIBEBE]

As more and more people have shortfalls, what happens if the cash cannot be found. Do you sell the house, remortgagae or something else? Can't work it out.

Ultimately the bank will repossess the house if the debt can't be paid.

Can either sell and pay the shortfall, remortgage as long as you are in a position to do this. If it was mis-sold have you put in a claim with them? My dad's endowment fell short by a relatively small amout (around £7k) and his mis-selling compensation was just over £5k so it was a much smaller amount that he needed to find. Obviously a lot of endowments were far worse than this though!

If you can't pay then they would re-posess the house. So you need SOME way of paying.. re-mortgage, other investments etc, or sell.

Most people I know with a forecast shortfall are putting cash aside in things like ISAs so that they have it available to pay off the balance. They seem to get quite a lot of notice. An alternative would be to remortgage the property, convert it to a capital repayment mortgage and then use any proceeds from the endowment policy as a bonus when it matures.

We switched to a repayment mortgage & kept the endowments up for life insurance purposes & savings.

Thank you, not for me was just trying to work it out.