Act now on mis-sold endowments: new article

vinno65

dunstonh wrote:

Also, endowment mortgages tend to cost less each month when compared to a repayment mortgage.

Hi Dunston,
could you possibly give the the overall cost of a standard 25 year repayment mortgage as compared to a 25 year endowment using say an average interest rate of 8% of the term. It would be interesting to see just how much cheaper an endowment is.

regards Vinno

dunstonh

vinno65 wrote:

Hi Dunston,
could you possibly give the the overall cost of a standard 25 year repayment mortgage as compared to a 25 year endowment using say an average interest rate of 8% of the term. It would be interesting to see just how much cheaper an endowment is.

regards Vinno

8% would equate to about £10pm on a 40k endowment.

vinno65

Hi Dunston,

that's not quite what i was after i was looking more for the total outgoings over 25 years for both types of mortgages.

regards Vinno

also any comments on below?

http://www.thisismoney.co.uk/mortgages/endowments/article.html?in_article_id=417463&in_page_id=55

mayb_2

Tens of thousands of people whose mortgage endowment complaints were rejected - supposedly because they were 'out of time' - have been given new hope of compensation. This follows a report by the Financial Services Authority that has found that some banks and insurers wrongly applied deadlines on mis-selling complaints.

Had a look at the link you posted vino65 and apart from the warnings about continuing shortfalls in endowments I found this little gem.
http://www.thisismoney.co.uk/mortgages/endowments/article.html?in_article_id=417111&in_page_id=55
Worth looking into for some people on this site don't you think?
This bit obviously relates to your case Vinno.

Is there any advice in the letter that says you have the option to 'wait and see' if the endowment performance improves? If so, a deadline should not apply. Any discrepancies should be raised with the firm.

Lewie

Yeah right dunst.
The day i'll be fair to the banks etc is the day they are fair to the public.
No breath holding recommended there then.
It's the lies that gets my goat and they get away with it.
Time to switch i think.
I'm thinking of switching to a reypayment with another company but still keeping the endowment going to see if it does any good, it's only a small one so not too much of a gamble. Alot can happen in the next 15 years, you never know.
Is the remortgage guide here any good before i go trying to make sense of it?
Cheers.

mayb_2

I would be careful about keeping the endowment unless you can really afford to take out a new mortgage and also keep up the payments on your endowment too. You will definately be taking a chance on it paying out in the future. If the no win no fee company is telling you that you will not lose out if you remortgage then I presume it is because you will have the lump sum from your endowment to pay off part of your mortgage.

Would you trust this lot to sell you anything at all? The company I had my endowment with advised me to pay more in order to avoid a shortfall and so I took their advice. A year later the shortfall was even bigger. But in the meantime they had had more of my money to play with and no doubt a lot of other people's too. Why would you want to leave your money with a company that has treated you this way?

The Main site has some very good information about remortgaging and you can download a lot of information before you look around. There is some advice about searching for the best deals too.

Lewie

Hi mayb,
I don't trust anyone anymore!
Yes i could afford both as my mortgage is small and so are the payments on the endowment.
Perhaps it would be best to just get it out of my hair.
If i cash it in against the mortgage then at least i'll never know what would have happened.
Yeah, that sounds more sensible (not like me at all).
But no doubt i'll change my mind several more times, i'm very indecisive, i think :-)

Art_2

Lewie wrote:

Hi mayb,
I don't trust anyone anymore!
Yes i could afford both as my mortgage is small and so are the payments on the endowment.
Perhaps it would be best to just get it out of my hair.
If i cash it in against the mortgage then at least i'll never know what would have happened.
Yeah, that sounds more sensible (not like me at all).
But no doubt i'll change my mind several more times, i'm very indecisive, i think :-)

If you do decide to surrender your policy remember not to do so direct with the insurance company. There are a number of firms that may buy it from you at a better rate.

Regards,
Art.

Lewie

wrote:

LewieThey are saying that you shouldnt have been sold this option but actually you are better off at this point in time if you were to surrender the endowment and switch to a repayment mortgage. To do that takes about 10-15 minutes work. If you wanted to be fair, you could ask them to pay the switching cost to repayment but if you really wanted to be fair, you ought to give them back the surplus you are currently better off by

Yeah right dunst.
The day i'll be fair to the banks etc is the day they are fair to the public.
No breath holding recommended there then.
No, i wouldn't be any worse off, nor better, no surplus to give.
As for 10-15 mins to switch, do tell, it takes longer than that to read the forms let alone make an appointment, go in to see them etc. The question is why should i have to do ANYTHING when it's their lies that caused the problem?
It's the lies that gets my goat and they get away with it.
Time to switch i think.
I'm thinking of switching to a reypayment with another company but still keeping the endowment going to see if it does any good, it's only a small one so not too much of a gamble. Alot can happen in the next 15 years, you never know.
Is the remortgage guide here any good before i go trying to make sense of it?
Cheers

vinno65

Hi Mayb,
just goes to show what a joke the time bar rules are. The change in May/June 2004 (i.e. letters had to be red and give a final date for complaint)
came in after intervention by the House of Commons select committee. The FSA however decided it would not be retrospective and so the 100's of thousands already time barred by that point remained time barred.

And what's the difference between an amber letter and a red letter. The answer is nothing except the amber will not show a shortfall at all three rates and states there is a "significant" risk of shortfall rather than a "high" risk..They both contain exactly the same information so why does one time bar and one doesn't?

I had heard that Brunel Franklin were going to test a case in court but it hasn't happened yet. I don't know if they will go ahead with it but if the could overturn the time bar rules then obviously it could mean millions for complaint handling firms,

regards Vinno