Act now on mis-sold endowments: new article

section60

Hi Dunstonh

sorry it has taken a while to dig out the info -here it is

Date started: 23/09/08 Target date:23/09/23

Monthly payments: 138.82 ( 111.50 invested remainder for life cover)

Total invested to 5/10/07 : £12098.58
Total invested in isa 07/08 : £666.88

Current value to 05/10/07 : 16,484.23

Mortgage value : £77,500

Just had an Amber alert !

What are your thoughts please

Thanks in advance

treliac

"Date started: 23/09/08"

Should that be 23/09/98?

section60

yes ,should be 98 thanks for that

dunstonh

1998 was a good time to start one. Your early units purchased would have suffered in the early years of the 2001/2 decline but the units you were buying in those years and until 2006 were much cheaper and they will be the ones that make the most money in the long run. 2007 was a pretty naff year in general.

£111.50pm invested over 25 years at 7% growth = £87,802

That is easily within the range of a decent investment spread as you aim for double digits with those. A FTSE tracker or bank managed fund may be closer to that 7% though.

I would expect an amber purely on the events that have happened but whilst you may see amber as bad, I see it as good. The ideal long term scenario on long term payments is for a crash to happen in the early years and the unit price drop. This will hit the projections but the cheaper unit price is more valuable in the long term.

I would suggest that you get the ISA reviewed by an IFA or do it yourself if you feel up to it. If you could get double digit returns it would equate to £138000 at 10%. You may get the charges lower as well.

Like any investment, there are no guarantees. However, quality of investment is important as well as where you invest and banks just arent up to it.

section60

Thanks Dunstonh,

Im currently 10yrs into the plan and its worth £16484 and they are projecting a final amount of £77,100 providing it hits 7% per annum .Am i unduly panicking ?

ipaqowner

ipaqowner wrote: »

After having my complaint for mis-selling an endowment mortgage rejected by Winterthur Life UK Ltd and no result from a "no win no fee" company I have now received, out of the blue, a letter from Winterthur who would like to reconsider their decision. With this letter they have sent a questionnaire and at the end of this they give me 2 options.
"Option A" is any loss is calculated using the Halifax Standard Variable Rate and "Option B" is my exact mortgage details used in the calculation.
They cannot advise which option I should select and I am therefore in the dark as to which one would be more beneficial to me.
Could anyone help explain the difference and which one would suit me best please?.

Just an update on this.
My wife filled in the questionaire using option B as she is organised and had all the figures to hand from old statements she had filed away...RESULT :j
Winterthur agreed we had been mis-sold and have offered us two options.

Option1
"Redress and surrender value £14,352.42" in a cheque payable to me and I have to surrender the policies.

Option2
"Redress only £1,399.65" in a cheque payable to me and the policy remains in force.

This letter arrived in November and my mortgage ends in January 2009.

I have another 3 months to reply and accept either of these options so my question now is...has anyone been in a similar situation with Winterthur and received a final bonus on maturity of the policy?

Gary_T_2

I have continued to pay into my 'top-up' endowment despite selling up house, closing mortgage and paying off the negative equity several years ago. Over recent years I have received a few Red Alerts that it is underperforming by about 50% and that I could top it up (or complain) or leave as it is.
The facts are; Target £14,400 in 2015. Start date 1990. Proj shortfall estimated at £6000. Complaint procedure closes on 29 June 2008.

Three questions; 1. Does it matter that there is no mortgage being serviced any longer? 2. Will complaining be relevant or likely to be successful in this regard? 3. Should top-up's be considered or should it just be let to run until 2015? Many, many thanks for any quick thoughts on this.

mayb_2

Gary I am not sure what actually happens, but it strikes me that the important issue here is whether you believe it was missold at the time. You can't complain because it didn't reach target unless you didn't understand the possibility of this when you purchased it. If you believe it was missold I can't see why not having a mortgage makes any difference. But then there are a lot of things I can't see about the system of dealing with these things! No doubt someone will enlighten us.

Lady-Jane_5

Not sure if this is the right place to post this, but here goes!

In 1987 my husband was sold the above plan which was supposed to give us a lump sum to pay off the mortgage when he reaches 60, plus a life assurance built in.

We 've changed our mortgage providers twice since we took out this plan & now have a mortgage made up of interest only for a certain amount, & repayment of capital+interest on the other part.

The frightening thing is we don't think the lump sum will pay off our outstanding 'interest only' part of our mortgage when it comes to an end.
How do we make a complaint about this? Do we make a complaint about this using the miss-sold endowment bit on this website, or does it really come under pensions???? Also, Allied Dunbar are no longer in existence, but Zurich Assurance ltd took them over & we have paperwork from them which includes the same plan number, so do you know where we stand with all that?

We don't really understand how these plans work, but have kept info from throughout the years & from when we first took it out.

Please can someone from this site help us?
Regards
Lady-Jane + Hubby

smigger15

From my experience you would claim as normal for the miss-sold endownment policy as you would if it was covering the whole of your mortgage. It doesn't make any difference that it now covers only part of your mortgage, when you purchased it, you bought it in good faith that this would pay off a certain amount and it doesn't so get your claim in:) And it makes no difference that they have been taken over. Good Luck