PEP, changed to ISA to pay of a mortgage

jmkenn451956

Dear all

in 1996 I took out a PEP with Halifax, to pay off £14000 from my mortgage in 2021. When PEP's were stopped Halifax switched it to an ISA.

I have been paying in £39.84 each month since and expected I should now be in profit. Imagine my horror when I contacted them this week to find that my in excess of £6k contributions is now worth less that £2.5.

I'm fortunate I can pay off my mortgage without, but fear for others who may be relying on this type of investment.

Is there any course of action I can take against Halifax?

John

dunstonh

Why do you think you would be in surplus just after a major stockmarket crash that would have seen the value drop by nearly 40%? We are back to around 2005 pricing.

Also, part of the premiums you pay normally include life assurance and possibly CI and Halifax investments are hardly ideal but even then they cannot buck the trend.

That said, drops like these can be very good news for those with long term regular contracts as you are now buying units very much cheaper and these have the potential to make the most money for you in the long run.

The concept is good but it has to be done right and with understanding. If you dont understand the options, dont utilise the right investments and dont have a low target growth rate then it is harder to hit target.