Mortgage endowment

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Durran
Durran Posts: 1 Newbie
in Reclaim mortgage fees, council tax, etc
Would an endowment policy that was insisted on by the building society to cover the mortgage and to pay off the loan plus generate a lump sum when the mortgage ends qualify as mis selling as the policy did not produce the said lump sum at maturity.Also as I was not offered the opportunity to take a repayment mortgage would this be grounds for claiming the above as mis selling ppi ?

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    No it wouldn't (on both counts)
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    Would an endowment policy that was insisted on by the building society to cover the mortgage and to pay off the loan plus generate a lump sum when the mortgage ends qualify as mis selling as the policy did not produce the said lump sum at maturity.

    The lender was right to insist an endowment for an interest only mortgage. That requirement ended during the credit boom years but has actually returned following the credit crunch (a repayment vehicle plan).

    Lenders are allowed to insist on insurance as a condition of borrowing.
    also as I was not offered the opportunity to take a repayment mortgage would this be grounds for claiming the above as mis selling ppi ?

    a mortgage is not PPI. An endowment is not PPI. So, no, it cannot be grounds for making a PPI complaint.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    Durran wrote: »
    as I was not offered the opportunity to take a repayment mortgage would this be grounds for claiming the above as mis selling ppi ?
    PPI is a type of insurance (which you didn't have).

    It's not an all encompassing name for a complaint!

    So, as above, it cannot be grounds for making a PPI complaint.
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