missold endowment not enough compensation

110frankie

Hi, we claimed compensation last year for a missold endowment. The Halifax ended up giving us a couple of hundred pounds.
Now, with one payment left, our shortfall is going to be £4,000.
Shouldn't the compensation be the ammount of the shortfall?

luckyfool

No. Thats not what the compensation is supposed to be based on, it is based on returning you to the position you would have been in on a repayment mortgage. i.e. If your payments on the interest only mortgage and endowment together were less than they would have been on capital and interest, then that is taken into account.

dunstonh

Shouldn't the compensation be the ammount of the shortfall?

As you decided to stay with the endowment after the redress payment was made and not switch to repayment basis, you took on that risk. Had you switched at the time you would not be in this position.

110frankie

sorry for the belated thanks to you two for that, I've not been well.

Luckily we haven't suffered much - just a couple of grand, but I do feel for those people who have had huge chunks of shortfall to find.

magpiecottage

luckyfool wrote: »

i.e. If your payments on the interest only mortgage and endowment together were less than they would have been on capital and interest, then that is taken into account.

Not necessarily - they are supposed to check you are of "sufficient means" before taking account of any notional saving.