Endowment Mortgage Miss Selling:

[MrMessy]

I put a claim into Norwich Union re our Endowment Mortgage that we where missed sold. They have made us an offer using FSA parameters. Do we just except it. There is no breakdown how they arrived at this just figures based on the differences in costs between a repayment mortgage and an endowment mortgage. Has anybody else had experiences of this?

I had one last year, Got seven and a half grand back, but cost 2 grand for the soliciter. better than a kick in the nads.

H

Mines has got to be about the longest running "simple" claim ever. I've lodged action against "Abbey National" via a specialist, but due to the company being one of the worst for this, the Financial Ombudsman has ordered them to reopen tens of thousands of cases apparently. As a result, mines has ran for well over a year now. Needless to say, I've since remortgaged, froze the endowment and am in a far better position. I'm looking to be compensated though - the damn thing ran for 10 years and was forecast to be AMAZINGLY short, like over 50%

Good luck to all involved in this mess.

Garry

All I can add is i changed my mortgage, still have the original endowment, a part repayment mortgage an isa and another endowment to make sure mine is paid off in 8 and a half years time. Make sure you have covered the mortgage somehow. was forecast a £20K deficit and they're trying to stop the terminal bonus as well. Good luck to anybody else in this position.

H

Runt...Are you not in danger of repeating the situation all over again? What I mean is,you appear to once more be relying on the performance of two investment vehicles in order to pay your mortgage off for you? Especially if you hope to pay it off early,they will have to perform very well?

Have had the origanal endowment for nearly 18 years will mature in another 7. Was advised to keep it as the loss of cashing it in wouldnt be worth it. The ISA with the co-op so far has exceeded what I had as a minimum forecast and the part repayment takes the Mortgage down to 10K more than the Forecast for the original endowment. The second endowment should more than cover this so the ISA is really a back up.
H

Runt...Nice one m8,looks like you got things covered then.

[timwilky]

Whilst I feel for all who came a cropper over the use of endowment policy based mortgages, I cannot help but think why should you be compensated.

At the time I took out my mortgage in 1985, endowment policies were all the rage and many told me I was daft to go traditional repayment mortgage as the endowment would pay me cash in addition to settling the mortgage at completion, plus the premiums would be cheaper. But as you were effectively buying into an investment scheme I could not see it as secure. Was the mis-selling simply that the sellers did not state the obvious and advise purchasers that the schemes were not guaranteed to make the projected price.

Surely before anyone commits large sums into any scheme, they undertake even a rudimentary risk analysis that would have thrown up this potential risk.

[MrMessy]

Tim,
Has you say these where all the rage in the mid 80's early 90's. There are various criteria laid down by the FSA to make a claim. At the time I took the endowment mortgage out,there was not the information or different types of mortgage available has there is now. Being a lot younger I trusted what the building society manager told me, ie the mortage would be paid off and extra for my retirement. They had performed well in the past so I took one out. Seeing they are offering me some money I would be daft not to accept. Will go towards another bike for my collection!