Can I or Cant I

BigMank

Hi
Had a letter from the company responsible for our endownment last week, who, for the first time have admitted that there will be a predicted shortfall in our mortgage of approximately £5,800,this being the highest figure, assuming MY investmet grows at 4% each year.The maturity date is 1/6/20012.
(MY INVESTMENT? they invested it!).
(The other figures quoted were, £3,600 if it grows by 6%, and £1,370, if it grows by 8%. Optimistic or what!)

I am fortunately, or unfortunately, in a position where I have recently retired, and my commutaion has allowed me to pay off my mortgage,which we have done.

Obviously this money was set aside for my retirement, but I have now decided to pay it off, thus alleviating the interest on that account.
It would of had to have been paid off anyhow.

Now that I have paid it off, I am still keeping the endownment payments up, but what i would like to know is.
1. As I have paid my mortgage off, Can I claim for a mis-sold endownment?
2. If i claim, will this have an effect when the endownment matures.?
3. Will I get ALL the returns when it does mature.?
4.If i claim does this make the endownment invalid?

Many Thanks
K

theartfullodger

Stone me! Do people think that everything they put money into must go up in value and they can never lose & if they do it is someone else's fault & someone else should pay??

Wish I only had shortfalls of £5.8k on what I'd invested in.

You made the decision to take out the endowment (yes you were advised, but you decided). May I humbly suggest you do the decent honest British thing of accepting your responsibilities & being grateful for those other privileges you have enjoyed (eg the commutation..). And enjoy you retirement! Lucky you!

Cheers & Best Wishes to all, including those who don't agree with me!


Lodger

PS But, since you asked...
1. As I have paid my mortgage off, Can I claim for a mis-sold endownment? - Irrelevant if you have paid off mortgage or not.
2. If i claim, will this have an effect when the endownment matures.? - Nope
3. Will I get ALL the returns when it does mature.? - Which returns??
4.If i claim does this make the endownment invalid? - I sincerely hope not. Why should it??

I presume you've already read..
http://www.moneysavingexpert.com/reclaim/endowments-miss-sold

theartfullodger

Let me share this one...

BigMank
MoneySaving Newbie


Join Date: Jan 2008
Post Count: 5
Thanked 1 Time in 1 Post


Reply
I paid 11 percent of my monthly wages for 30 years in order to commute that, and keep it for my retirement.
On this site you look for constructive comments, not destructive critisicm
You are obviously very bitter.
The trouble with us Brits is that we do not complain enough.
They have made enough money out of me.
The artfullodger, just about sums you up.
Oh and yes I have a good monthly pension, and i am only 52, and yes I am going to enjoy it, and do you know why, because I planned for it, albeit 30 years ago.

dunstonh

for the first time have admitted that there will be a predicted shortfall

They are not predictions. They are example projections used set rates which may understate of overstate the likely returns.

if it grows by 8%. Optimistic or what!

Stockmarket was up by 8% in April. 8% is not unrealistic from a low point with many investments.

1. As I have paid my mortgage off, Can I claim for a mis-sold endownment?

3/4 of endowments are now time barred. If yours isnt, then you have another problem in that if you complain and if the complaint is upheld, the redress calculation will be done to the point you repaid your mortgage. You say that you have only just received your first shortfall letter. So you are unlikely to be timebarred (unless it fell into shortfall after the tech stocks crash). However, you paid your mortgage off before it went into shortfall so any redress payment is unlikely.

2. If i claim, will this have an effect when the endownment matures.?
3. Will I get ALL the returns when it does mature.?
4.If i claim does this make the endownment invalid?

No.

jamesd

We're still quite near market lows. It's entirely reaosnable to think that your investment may grow by more than 8% between now and 2012. Such variability is one of the risks of fixed end date investments, that could leave the end happening during a low time. 2013 to 2015 would be a nicer end point, I think, but 2012 doesn't look too bad from here.

4, 6 and 8 are just numbers they are required to use for projections. They don't have any effect on what the actual return for the investments will be, they are supposed to give you a range that's usually not too unrealistic to help you plan. We're currently in one of the times where they may well be unrealistic on the low side.

Since this is your first warning letter it seems that they have been doing pretty well, only having to issue a warning during a massive market upheaval, and not even in the first year of it. You've good reason for optimism here, though no guarantee.