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Mortgage endowment shortfall claiming money back.


harrycatcat1
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I took out an endowment to cover the mortgage some years back and it is due to mature in 2018.

When I took it out it was supposed to make £49,000 but I have been told it will only make £27,000.

 

The other day I had a chap ring up out of the blue asking me about payment protection etc and I told him NO then he asked about endowments, anyway to cut a long story short he said he could get the difference paid back ie £22,000 and their firm would take 10% ie £2200.

 

Has anyone heard this? Is it kosher or what?

 

Regards

 

Hcc

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I took out an endowment to cover the mortgage some years back and it is due to mature in 2018.

When I took it out it was supposed to make £49,000 but I have been told it will only make £27,000.

 

The other day I had a chap ring up out of the blue asking me about payment protection etc and I told him NO then he asked about endowments, anyway to cut a long story short he said he could get the difference paid back ie £22,000 and their firm would take 10% ie £2200.

 

Has anyone heard this? Is it kosher or what?

 

Regards

 

Hcc

i di it some time ago and got my money back but i thought they were stopping it now and claims had to be in by a certain date now passed but i could be wrong

 

colin

Edited by colin lad
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It depends if you are mis sold. 99% of mortgage arrangers will have made a diary note saying he has told you about the risks, even if thats not your recollection. But he probably did tell you, he would have just gabbled it out ever so quickly and then shrugged his shoulders as if to say "but everyone knows thats not going to happen"

 

Its worth a try as long as they don't get you to sign anything saying that if the claim is unsuccessful you will be liable to pay their fee which is their usual trick.

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I believe that you'd have received a letter about 6 years ago offering you the right to make a compliant. As you did not do so at the time, have now got a slim chance of redress.

 

Plus read the small print of your new found, knights in shining excrement, as you'll be potentially liable to pay for their services come what may.

 

If you wish to pursue, then write to your company direct, expressing your compliant and await a reply. Give claims companies a very wide berth.

 

Good luck,

 

BS

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I took out an endowment to cover the mortgage some years back and it is due to mature in 2018.

When I took it out it was supposed to make £49,000 but I have been told it will only make £27,000.

 

The other day I had a chap ring up out of the blue asking me about payment protection etc and I told him NO then he asked about endowments, anyway to cut a long story short he said he could get the difference paid back ie £22,000 and their firm would take 10% ie £2200.

 

Has anyone heard this? Is it kosher or what?

 

Regards

 

Hcc

 

 

Go to the original lender if you have been mis-sold they now have a statutory obligation to consider your case and refund you if you have been mis-sold.

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I'm not sure endowments are going to be quite as dire as people think. There are companies queuing up to buy them off you aren't there?

 

I've got a standard life one (thankfully no longer connected to my mortgage) which I'm sticking with, it matures in 10 years time.

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As others have said, you can do this yourself, no need to pay a claims monkey to do it. The same goes for PPI really.

 

The FOS have a special form/questionnaire for you to complete & send to the life company. If the life company don't agree the policy was mis-sold then you can bash it into the FOS.

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There should be no need to go to the claims firms. You should of had notice that there may be a short fall in the expected pay out then a red notice that it won't pay out.

 

When you have the red notice you did have so long to put in a claim to recover some or most of the short fall. Can't remember what the time span was the for the claim period.

 

The rub as mentioned if you chose to take out the endowment instead of a repayment and were advised of the risks, you may not have a valid claim. If like a lot of people the banks or building sociaties advised their customers to switch from repayment to endowment mortgage you have a valid claim (time limit permitting).

 

My bank advised me to switch over and my red letter advised that my projected short fall was around 30%, in the end the prodiction was not that far off. I claimed myself and got a good % of the short fall.

 

You then have the option to to increase your mortgage payments to cover the short fall (using the payout helps reduce the capital owed), take out another mortgage to cover the short fall or wait until the end of the mortgage waiting to see what the final short fall is and pay the differance between the pay out and what iis owed to the bank / building sociaty.

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Not sure if we were wrongly advised but we looked to claim for our policy being mis sold but were told that because it was taken out before a certain date, we couldnt claim. I think we took the policy out in 1986 and it did fall short of the projected number. Luckily we didnt need the money to pay off the mortgage 25 years later.

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I cannot understand how people can blame anyone but themselves if their endowment fails to pay off the mortgage? The risks would have been explained at the point of sale and the projected value(both upper and lower yield)would have been made clear for those who were not simply choosing the cheaper option.Even if(and its a big if)you were not informed of the potential pitfalls of endowment policies then surely(considering the sums of money involved)it is the buyers responsibility to do some research?

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I cannot understand how people can blame anyone but themselves if their endowment fails to pay off the mortgage? The risks would have been explained at the point of sale and the projected value(both upper and lower yield)would have been made clear for those who were not simply choosing the cheaper option.Even if(and its a big if)you were not informed of the potential pitfalls of endowment policies then surely(considering the sums of money involved)it is the buyers responsibility to do some research?

 

 

The risks were probally explained and that the policies can go up and down. The advisors advised that it was best to switch to endowment and the value of the policy to take out to cover any losses.

 

What they failed to do was adise on policy pay outs and what value of policy would be needed if the interest rates dropped to the rates that caused the problems. They were supposed to be the experts, and if they had advised people correctly on the size of policy needed to cover the mortgage at the lower interest rates probally none of us would of switched to endowment.

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I cannot understand how people can blame anyone but themselves if their endowment fails to pay off the mortgage? The risks would have been explained at the point of sale and the projected value(both upper and lower yield)would have been made clear for those who were not simply choosing the cheaper option.Even if(and its a big if)you were not informed of the potential pitfalls of endowment policies then surely(considering the sums of money involved)it is the buyers responsibility to do some research?

 

 

I got mine from an Independent Financial Adviser and he said it would easily make £49,000 and if everything went right it should make £60,000 so the advice he gave me was wrong, that's probably why they say "have you been mis sold an endowment" because it has happened to more than me. :yes:

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Not sure if we were wrongly advised but we looked to claim for our policy being mis sold but were told that because it was taken out before a certain date, we couldnt claim. I think we took the policy out in 1986 and it did fall short of the projected number. Luckily we didnt need the money to pay off the mortgage 25 years later.

 

 

I dont know the exact reason but the Ombudsman wont look into anything before 1988.

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