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  • FIRST POST
    • nigeljk2
    • By nigeljk2 8th Jan 18, 3:37 PM
    • 3Posts
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    nigeljk2
    Halifax Endowment Mortgage
    • #1
    • 8th Jan 18, 3:37 PM
    Halifax Endowment Mortgage 8th Jan 18 at 3:37 PM
    I've has a look through previous posts so know a little, but I'm still at a loss how to proceed.

    I had a Halifax Mortgage in 1986 (I was 23). I was referred by my accountant, who presumably got a referral fee from them. I have never been in the branch (Stratford, London) and all correspondence was handled by post. I was offered an Interest Only Mortgage with the Halifax with an endowment policy. I can't remember who the insurer was (other threads lead me to believe it may have been Standard Life). I'm pretty sure there was an Income protection element to the policy. I was self employed and this was almost certainly inappropriate. There was no discussion on other mortgage types or other insurers, it was all presented as a 'done deal'.

    The house was eventually repossessed in 1989, after an extended period without any work. I guess I have missed the boat with regards to the miss selling of the endowment, but I'm not sure what happens to these policies if the house is repossessed. The balance was paid to me at the time (there was no shortfall, and after all of the fees etc this was around £16K).

    I've tried to get details of the accounts but have so far got no where. I know I banked with the Midland at the time and have tried to get my bank details from HSBC, without success.

    I've tried the Halifax but I've been told to write in with all of the details. I've used mylostaccount.org.uk to start a trace for the account.

    Does anyone know any other way to get the information, so that I can start a claim for MPPI?
Page 1
    • dunstonh
    • By dunstonh 8th Jan 18, 4:00 PM
    • 90,406 Posts
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    dunstonh
    • #2
    • 8th Jan 18, 4:00 PM
    • #2
    • 8th Jan 18, 4:00 PM
    I can't remember who the insurer was (other threads lead me to believe it may have been Standard Life).
    Standard Life became their tied provider in the lead up to depolarisation which occurred in 1988. However, earlier sales used either the adviser or accountant that referred them to the lender or a local agent in the town.

    I'm pretty sure there was an Income protection element to the policy.
    The only bolt ons available to an endomwent policy were critical illness cover and waiver of premium.

    I was self employed and this was almost certainly inappropriate.
    Incorrect. Your employment status has no impact on the life cover, CIC or WOP elements of an endowment policy.

    There was no discussion on other mortgage types or other insurers, it was all presented as a 'done deal'.
    As you would expect in 1986.

    I guess I have missed the boat with regards to the miss selling of the endowment
    You were never on the boat to begin with. Plus, endowments only started failing around 1999.
    but I'm not sure what happens to these policies if the house is repossessed.
    The money is used to offset the debt with any surplus coming to you. 3 years in, the endowment would be lucky to have any value as a mid 80s plan typically only started getting value after 3-5 years.

    Does anyone know any other way to get the information, so that I can start a claim for MPPI?
    What MPPI? All you wrote was about an endowment policy and a mortgage that was taken out 2 years before regulation of financial services. You haven't mentioned MPPI in any of your post prior to the last sentence. What is this MPPI? (not that it matters as regulation of MPPI only started in Jan 2005)
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • nigeljk2
    • By nigeljk2 8th Jan 18, 4:09 PM
    • 3 Posts
    • 1 Thanks
    nigeljk2
    • #3
    • 8th Jan 18, 4:09 PM
    • #3
    • 8th Jan 18, 4:09 PM
    Thanks for the speedy informative reply.
    I should have said the MPPI applied to the Interest only mortgage from the Halifax. I thought I needed all of the details before proceeding?

    Thanks for the information regarding the policy, I figured it must have been something like that.
    • Deewm76
    • By Deewm76 10th Jan 18, 12:48 PM
    • 21 Posts
    • 6 Thanks
    Deewm76
    • #4
    • 10th Jan 18, 12:48 PM
    • #4
    • 10th Jan 18, 12:48 PM
    I worked for Standard Life for 12 years so know their products/back office processes very well. About 50% of products bought are purchased via an Independent Financial advisor (as in you case your accountant) Many accountants additionally offer financial planning advice to their clients so this is a normal practice. When your home was sold did you/your accountant surrender your endowment policy or had your home just increased in value? It also sounds to me that you may be confusing a Income protection plan with PPI. Income protection plans are often sold alongside new mortgages/endowments and if you can afford it then it’s genuinely advised that you purchase it. This type of policy is completely different to PPI. If you have any live/exsisting policy’s with Standard Life then I suggest you contact them today. They have a general customer service telephone number (based in Edinburgh) The staff are very well informed and will get to the bottom of this very quickly.
    • Deewm76
    • By Deewm76 10th Jan 18, 12:56 PM
    • 21 Posts
    • 6 Thanks
    Deewm76
    • #5
    • 10th Jan 18, 12:56 PM
    • #5
    • 10th Jan 18, 12:56 PM
    Telephone: +44(0)131 225 2552
    www.standardlife.com (this website)
    • dunstonh
    • By dunstonh 10th Jan 18, 1:14 PM
    • 90,406 Posts
    • 57,190 Thanks
    dunstonh
    • #6
    • 10th Jan 18, 1:14 PM
    • #6
    • 10th Jan 18, 1:14 PM
    Many accountants additionally offer financial planning advice to their clients so this is a normal practice.
    Not any more. Most accountants were with FIMBRA. When FIMBRA ended in 1995, most accountants dropped their advice status rather than sign up with the PIA. This allowed them to drop their historic liability as 1988-1995 FIMBRA cases only fell under regulation if the accountant/adviser went on to obtain PIA authorisation.

    Since then, most accountants either have a relationship with a local IFA firm or they have an own-branded team of IFAs in-house. The accountant themselves does not give the advice and is not authorised to give advice.

    The point of sale, in this case, is 1986. Polarisation and regulation didn't start until 29th April 1988 (A day as it was known). Standard Life became Halifax's tied insurer before polarisation but I cannot recall when. Most banks and building societies made their choice and started in the year before it was mandatory. They have to consider pre-regulation complaints if it was sold by a tied agent of Halifax/Std Life. They dont have to consider pre-regulation complaints if it was sold by a local IFA or accountant

    It may seem strange nowadays but I remember the days when we would place the mortgage with a building society and use their office for the client meeting but place the insurances through our own agencies. The branch manager used to be paid a cut.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Deewm76
    • By Deewm76 10th Jan 18, 1:53 PM
    • 21 Posts
    • 6 Thanks
    Deewm76
    • #7
    • 10th Jan 18, 1:53 PM
    • #7
    • 10th Jan 18, 1:53 PM
    Not any more. Most accountants were with FIMBRA. When FIMBRA ended in 1995, most accountants dropped their advice status rather than sign up with the PIA. This allowed them to drop their historic liability as 1988-1995 FIMBRA cases only fell under regulation if the accountant/adviser went on to obtain PIA authorisation.

    You absolutely correct (although if my memory serves me well) it was more of a bridging paper. A lot of accountants do still continue offering advise (although it’s the higher end of wealth management side). Would be interesting to know if there is pupped endowment policy still kicking about with this clients name on it on Standard Life’s many geriatric computer databases. lol


    I
    • nigeljk2
    • By nigeljk2 10th Jan 18, 5:08 PM
    • 3 Posts
    • 1 Thanks
    nigeljk2
    • #8
    • 10th Jan 18, 5:08 PM
    • #8
    • 10th Jan 18, 5:08 PM
    When the house was repossessed the Halifax handled everything. They must have had a forwarding address (probably my Mothers) as the paperwork and cheque after the house was sold (at auction) got to me. It's not a part of my life I dwell on as even today I find it difficult, so can't remember whether the endowment was cashed or not. I'll ring SL tomorrow.
    • Deewm76
    • By Deewm76 11th Jan 18, 10:22 AM
    • 21 Posts
    • 6 Thanks
    Deewm76
    • #9
    • 11th Jan 18, 10:22 AM
    • #9
    • 11th Jan 18, 10:22 AM
    Hopefully itís good news. let us know how you get on.
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