Has anybody received endowment mortgage compensation?

Alison,

We are just about to receive a compensation payment with regard to a mis-sold endowment.

For us the process has taken a long time as we had to involve the financial ombudsman.

In our dealings, when we finally received an offer from the endowment company, they were under an obligation to produce the figures in accordance with the guidlines set out by the fsa (financial services authority).

So I would imagine that your building society would have done the same thing, but its worth asking them.

They have to carry out two calculations, the first is as you mention, which is the difference between the current surrender value of your endowment and where you would have been if you had taken out a repayment mortgage. The second calculation is based on the actual payments that you have made by having an endowment and comparing it with the hypothetical payments you would have made with a repayment mortgage. If the endowment payments work out greater than the repayment payments then you should be offered the difference as compensation. If the other way around then no compensation is due.

Please note, the two calculations are worked out independently, and one does not affect the other.

In our case I asked the endowment company to provide further information on the method of calculating the compensation, which they duly sent me. However this information wasn't of great use as it just set out the terms of the each mortgage lender, as we had changed mortgage providers during the course of our endowment and it was also based, as expected, on the information that we had initially provided for calculation purposes. I did a rough calculation an although unable to come up with the same figures, I was satisfied that the compensation offer was in the right ballpark.

In summary, I would suggest that you contact your building society for more detailed info and see what they come up with and request confirmation that the calculation had been carried out in accordance with the fsa guidlines.

Apologies for waffling on but I hope this has been of some help

Good luck

Andy