how to calcualte endowment compensation

yorkshire_stu

i have recently received info from abbey national that i am to receive compensation for endowment mis-selling, which is great after what seems like ages to finally get something even though its only 3,618.35 quid, its better than nothing, plus i have been offered 7,698 to cash in the endowment as well.
Ive looked through the notice boards and various other web sites looking for details as to how i can check that the compo they have offered me is correct.
I havent found anything that points me in the right direction really.
Is the only option to ask Abbey National for the calculation figures on how they have come up with the compensation figure or is there an easy way for me to do it myself.
I mean i know the basics on how they calculate the compo but this means you need the % interest rate for each monthly payment in order to calculate what you have paid towards the endowment + interest, against having a repayment for the same time. The fact that i have had my endowment for nearly 14 years on a mortgage of 33,300 pounds, makes the calculation seem very daunting for me to do when i dont have all the figures.
Im in a bit of a muddle as AN have given me 3 weeks to accept this or refuse. I just really wanted to check the figures to see if all is correct, as initially AN turned my compo claim down but have since reversed the decision.
So they could maybe be trying to get away with paying as little as possible.
Any advice?

weatherwax_2

Re

i have recently received info from abbey national that i am to receive compensation for endowment mis-selling, which is great after what seems like ages to finally get something even though its only 3,618.35 quid

Count yourself lucky! We claimed on an AXA Sunlife policy, which is forecast to under-perform by £5-£6000, and though we were told we'd been missold, they've offered £179 compensation! The circumstances are a bit complicated but my gut feeling tells me we're being given the runaround.

If you don't have a good knowledge of the intricacies of these things(which most of us don't), the fat cats will nail you to the wall, not least of all by hurling jargon-filled letters at you until you simply give up. >:(

dunstonh

which is forecast to under-perform by £5-£6000

You mean projections show a shortfall. They are not forecasts.

The compensation methods (of which there are two) are set by the FSA. It is usually worked out by comparing your financial position with what would have been if you had taken a repayment mortgage at the outset.

With older endowments, you can find that the compensation isnt that high because in the 80s and early 90s, endowment + interest only mortgage was cheaper than repayment mortgage and life cover. Plus there was MIRAS available and this was often greater on interest only mortgages because the mortgage balance remained where it was.

robnye

it is not easy to calculate the compensation offer...

i did it for mine, but it took, hours.

plus the researching of everything need.

MIras rate, interest rates form old mortgage company.
decreasing life assurance rates, getting your head around mortgage interest/repayment figures.

I also requested the figures used from the endowment company, who i have to admit where very good. Once I had got a name and number of someone dealing with the case, I was able to contact them several times and received answers to my (many) questions/queries.

at the end of it my figures whilst not 100% accurate did match the endowment companies figures (allowing for a 3-5 % margin)

i also enjoyed the process (saddo that i am )

at least now i can create my own excel spreadsheets to compare my own mortgage figures with the annual/online statement


Good Luck !!!