General Forum - Endowment misselling compensation - Page 1

When i got my compensation i recieved an amount to put me at the same stage as i would have been had i took out a repayment mortgage, and given the option to change the mortgage to a repayment one at the same time.
bradford and bingley.

i have had the same for my natwest mortgage, 12 years in and the amount offered is £1600 the difference between the two... i can cash the endowment then start a repayment mortgage, but is it worth it???

i am going to see the bank next week, but any advice is welcome... my mortgage is only £30k... and i could reduce this by £20k from my savings... (= endowment surrender value is £9800)

The trouble is i like to have the savings to hand should i need them for a treat?

What about those mortgages which are balanced against your savings???



'I am going to live forever, or die trying'...

marksparks999,

I got £2600 on my 12 year-old £29k endowment policy but I've just kept it going and used it against my new mortgage when I moved.

DO NOT be cnned into surrendering it by the lender or bank as its the easy option for them. Anyhow, if you've got about 10 years left, it'll rise in value again.

Quote:
DO NOT be cnned into surrendering it by the lender or bank as its the easy option for them. Anyhow, if you've got about 10 years left, it'll rise in value again.

i was pretty much resigned to keeping it anyway... as at worst if the rates stayed the same until the full term i would only be £2k short according to their forecast!



'I am going to live forever, or die trying'...

The other reason it's worth keeping an endowment going if you've had it for a few years is the extra amount it would cost you for any life cover if you surrendered it.
We're all getting older and the older you get the more life insurance costs.

Oh and if it's Standard Life definitely hang on to it as you'll get shares when they demutualise.

Snaps

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When we are born we are naked, wet, hungry, and we get smacked on our arse. From there on in, life gets worse

This item was edited on Sunday, 29th January 2006, 09:15

Last month I started a new job calculating compensation for mis-sold endowments so, though I'm no expert, I can safely say that Gordy is right in saying that the compensation is designed to put you in financially the same position as if you had taken a repayment mortgage. That said, if you want a rough estimate of how much compensation you should expect if your complaint is upheld, it's usually around 10% of the policy value.

Furthermore if you are going to complain, don't get a company to complain for you, they just slow the process down by taking ages to provide any information and probably double the length of time between first complaining and, if upheld, getting compensated.


That's the saltiest thing I ever tasted, and I once ate a big heaping bowl of salt.

I used to do this for one of the big consultancy firms working at product provider clients in their reviews of Pensions/FSAVCs etc.

It is worth noting that just because an endowment may have underperformed - this is not grounds in itself for mis-selling and the claim is likely to be rejected. To claim mis-selling you need to provide proof of written guarantees that were used in the selling process.

However, others have been lucky in the claims, but this is not guaranteed unless you can proof these guarantees were there when making the buying decision.