Endowment Policy can you claim mis-sold PPI?

Murgaltruder · 9 April 2012 at 2:00PM

Hi

I'm wondering if anyone could help as I'm just getting myself a little confused! I had an endowment mortgage on a property for ten years and I wondered if you can claim back mis-sold PPI on this as is had a life insurance element to it and I was told it was a condition of getting the mortgage and not an optional element as such. I paid the bank a payment of £150-200 per month which I presume was to cover the interest only and a separate company, Winterthur Life a monthly payment of £66.93, which to me seems like a lot for life assurance as we only pay £15 now! I have already claimed for mis-selling of the endowment policy, getting a payout of £8000, does this already cover the life assurance element too? I still have all the paperwork but I just can't get my head around what it all means and currently being 7 months pregnant and shortly going on maternity leave I don't want to miss out on any cash I could get my hands on plus baby brain not helping!! Thanks

dunstonh · 9 April 2012 at 7:17PM

I had an endowment mortgage on a property for ten years and I wondered if you can claim back mis-sold PPI on this as is had a life insurance element to it and I was told it was a condition of getting the mortgage and not an optional element as such.

Can you clarify what you think PPI issued by general insurance companies has to do with endowments issued by life assurance companies and why you think there is a connection?

It is almost certainly correct that you were told to have an endowment if you took out an interest only mortgage. Most lenders insisted on it and it was only a more recent trend (during the credit boom) that saw that requirement stopped. Ironically, most lenders have moved back to that requirement based on advice of the FSA.

I paid the bank a payment of £150-200 per month which I presume was to cover the interest only and a separate company, Winterthur Life a monthly payment of £66.93, which to me seems like a lot for life assurance as we only pay £15 now!

The Winterthur policy would have been an endowment policy. The point of it was to pay out on death or aim to pay the mortgage amount on maturity. You appear to have changed from an endowment policy to a term assurance. A term assurance will not repay the mortgage on maturity.

I have already claimed for mis-selling of the endowment policy, getting a payout of £8000, does this already cover the life assurance element too?

What has life assurance got to do with it?

I don't want to miss out on any cash

you are not. you seem to be mixing up several different things with some strange reasons and coming to even strange conclusions. Bottom line is that you are not missing out on any compensation. You do appear to be missing out on understanding what you have and why though. I suggest you investigate and understand that first.

Murgaltruder · 9 April 2012 at 7:46PM

Yes the point being that I was confused about what the endowment entailed which is why I was asking for advice! I took out this endowment 14 years ago when I was 20 years old and did not have a good understanding of it at the time or since. I know I received letters saying there would be a shortfall and I followed the instruction on here to reclaim for mis-sold endowment policies, which as I said paid out £8000. So my understanding is I have reclaimed for the endowment being mis-sold but was there any PPI involved that I should also claim for? It may seem naive but I'm no financial advisor and I'm just trying to check I'm not missing out on anything!!

Murgaltruder · 9 April 2012 at 7:49PM

Oh and BTW I no longer make any payments towards the endowment policy and i believe this was closed on reciept of compensation. We now have a repayment mortgage on the new property.

Annisele · 9 April 2012 at 8:33PM

Short version: no, there was no PPI on your endowment, and nothing more you can claim for in respect of the endowment policy.

Slightly longer version: don't bother with any of the PPI claim companies - if you do have a PPI claim, you can deal with it yourself for free.

However, a mortgage endowment policy would not have had PPI included. It might have had WOP (waiver of premium) which would have paid the premiums on the endowment if you'd been unable to work due to sickness or disability, but it wouldn't have had PPI.

"Believing" the endowment was closed is probably not a good thing - give Winterthur a call and check! It is now part of Friends Life, and some of the policies are now branded Axa - stick your policy number in here to work out who to speak to about it.

The endowment would have had two elements: life cover and a savings element. The idea was that by the time your mortgage ended the savings element would have grown enough for you to repay your mortgage. If you died before then, the life cover element would have kicked in and repaid the mortgage for you. So, you can't compare the cost with the cost of a pure term assurance policy (which is probably what you're paying £15 for) as the term assurance policy has no savings element.

bungle21 · 16 July 2012 at 2:36PM

I wonder if anyone can help. I took out a repayment mortgae with Halifax in 1996. (I have since changed my lender). I bought my house through the Halifax estate agent arm and used the in house financial adviser. Although I work in the public sector and said I had adequate sick cover etc he led me to believe that securing my mortgage would be conditional on taking out payment protection/death cover for myself and my wife. I duly signed up for a Hiscox policy this later transferred to Winterthur. THe policy I have is a with benefits policy and runs for the period of the mortgage. As I have remortgagged it no longer covers my full outstanding debt. Over the period I have paid in excess of £17000 (£86/month) and the current value of bonuses is around 6K.
Firstly can I reclaim mis sold PPI in respect of this policy and Secondly how much would I be likely to get back I am loath to use agencies that charge up to 30% for the priviledge of writing letters on my behalf and would like some advise to assist making my decision. Thanks

holly_hobby · 16 July 2012 at 3:08PM

Its ASU (mortgage payment protection) policies in connection with a mge, not PPI, which is in relation to personal loans.

Are you unhappy with the ASU or endowment that you purchased ? Or both ?

Please give details as to why you do not believe that the policies concerning you, were not appropriate at the time of purchase.

Then we will be able to give a bit of guidance.

Holly

dunstonh · 16 July 2012 at 3:56PM

Firstly can I reclaim mis sold PPI in respect of this policy

No. As it is not PPI. you would look rather foolish making a complaint about PPI when you didnt have it.

Secondly how much would I be likely to get back I am loath to use agencies that charge up to 30% for the priviledge of writing letters on my behalf and would like some advise to assist making my decision.

Zero as it is not PPI.

alibo72 · 21 February 2013 at 1:02AM

Murgaltruder wrote: »

Hi

I'm wondering if anyone could help as I'm just getting myself a little confused! I had an endowment mortgage on a property for ten years and I wondered if you can claim back mis-sold PPI on this as is had a life insurance element to it and I was told it was a condition of getting the mortgage and not an optional element as such. I paid the bank a payment of £150-200 per month which I presume was to cover the interest only and a separate company, Winterthur Life a monthly payment of £66.93, which to me seems like a lot for life assurance as we only pay £15 now! I have already claimed for mis-selling of the endowment policy, getting a payout of £8000, does this already cover the life assurance element too? I still have all the paperwork but I just can't get my head around what it all means and currently being 7 months pregnant and shortly going on maternity leave I don't want to miss out on any cash I could get my hands on plus baby brain not helping!! Thanks

Hi there...was 'googling' away looking into Winterthur Life 'whole of life' insurance policies that my OH has had since 2000...sold to him to go with his original mortgage...our monthly payment is about £66 too...and found your post! Can you help me by answering a few questions please?? How did you go about claiming for the mis-selling of the endowment policy? Was it easy/did it take long? We are also on the lookout for any cash owed (hence looking at cancelling the payments) as we have a 17 month old and times are tough..plus i still have baby brain!

Would greatly appreciate any tips/info you can pass on! Thanks!!

holly_hobby · 21 February 2013 at 1:18AM

Your post isn't that clear ...

Are you saying that your partner was sold a whole of life (WOL) policy to support an interest only mortgage ?

Or are you saying, he has a WOL policy he is unhappy with, but also has an endowment supporting an interest only mortgage, that he is also unhappy with ? (which is possibly time barred in any event if this is anything to do with poor performance, and no claimed knowledge of risk)

Anyhoo, bit more info and some guidance on what the issues are.

Holly

alibo72 · 21 February 2013 at 9:45AM

Hi there...sorry if i was unclear...

My OH bought our property in 2000, as a single man, no dependants. His original mortgage was a repayment mortgage. He was talked into taking out (think he was told he had to make sure his mortgage was covered in the event of him having a heart attack or similar blah blah) a WOL insurance policy, covering critical illness. He is the only one mentioned on the policy and lo and behold once i've started looking into this (he has just let it run tbh as he thought it was a condition of the mortgage etc and let's face it, he's a bloke!) it turns out that he has 2 policies..exactly the same, both WOL, both criticall illness, one covering him for approx £30k and the other one for approx £60k. Considering his original mortgage was around £62k and he had no dependents then i really don't know why 2 policies were necessary at all. The 'surrender' value of the 2 policies totals about £4.5k.

Hope that gives you a bit more info!

Thanks for your interest!

Endowment Policy can you claim mis-sold PPI?

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