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Query on endowment mis-selling
lesley_rod
Posts: 188 Forumite
Hi,
There's so much advice about endowment mis-selling around but I have a question I was hoping someone would be able to answer.
In 1997 my marriage broke up and I moved from London to Scotland with 2 children. I rented for a year but then in August 1998 bought a house using a financial advisor to get the mortgage. I wasn't in a 'good place' financially, or emotionally, so I did as advised and borrowed money for a deposit from my parents repaying them from the cash back mortgage. I already had an endowment for £40k and the house price was £70k, I was advised to take out another endowment for £30k which I did.
With hindsight I made 2 mistakes,
1. Tying myself into the worst possible mortage (don't know the official term but it was variable no ceiling couldn't drop below 8.9%)
2. I should have taken a repayment portion instead of the second endowment.
I got out of the 5 year mortgage (which turned out to be a month short of 6 years) as soon as I could. The 2nd endowment I still have and is now expected to make £19k.
Obviously I have learnt from my experience and, as I was aware there was a risk with endowments, always felt I had no redress. I still feel this is probably the case but being new to MSE thought I'd check with the experts!
There's so much advice about endowment mis-selling around but I have a question I was hoping someone would be able to answer.
In 1997 my marriage broke up and I moved from London to Scotland with 2 children. I rented for a year but then in August 1998 bought a house using a financial advisor to get the mortgage. I wasn't in a 'good place' financially, or emotionally, so I did as advised and borrowed money for a deposit from my parents repaying them from the cash back mortgage. I already had an endowment for £40k and the house price was £70k, I was advised to take out another endowment for £30k which I did.
With hindsight I made 2 mistakes,
1. Tying myself into the worst possible mortage (don't know the official term but it was variable no ceiling couldn't drop below 8.9%)
2. I should have taken a repayment portion instead of the second endowment.
I got out of the 5 year mortgage (which turned out to be a month short of 6 years) as soon as I could. The 2nd endowment I still have and is now expected to make £19k.
Obviously I have learnt from my experience and, as I was aware there was a risk with endowments, always felt I had no redress. I still feel this is probably the case but being new to MSE thought I'd check with the experts!
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