Question to sell Endowment

vinno65

dunstonh wrote:

I didnt say that it compensation was paid because of shortfalls. I said the compensation method takes that into account..

No it doesn't. Redress, please don't use the word compensation, has nothing to do with potential shortfall. It is I agree based on current surrender value and this is compared to how much you would have paid off had you had a repayment mortgage and the difference(if you have lost out) is paid as redress to put you into the position you would have been in.
This has nothing at all to do with projected potential shortfalls. If someone complains later and the surrender value has gone up then the redress payable would be less, they would still only get what puts them into the position they would have been in. The redress is based on facts not potentials
Also as I've pointed out in other posts I believe it is wrong for people to accept redress but keep the endowment going as a means to paying off their mortgage. Or as you quite rightly point out the endowment may have a surpluss at maturity and so will these peolpe pay their redress back.
regards Vinno