FOS rewards the mis-selling wrong-doers etc.

dunstonh

Finally - let us deal with your premise - for whom exactly is endowment good financial advice?

Higher rate taxpayer, low target growth rate used and with suitable risk profile investing in suitable fund spread to match.

Garry_Anderson

Dunston, we all note that you did not deal with the destruction of Dreamers argument.

i.e. primarily the duff redress formula and finance industry pushing of endowment.

However, what if these people cannot repay the massive loan at the end of term - how was it fit for purpose of the loan payment then?

After all - that is the reason why endowment mortgages were taken out (the clue is in the name).

You want to disassociate the repayment of mortgage - we all know why

dunstonh

However, what if these people cannot repay the massive loan at the end of term - how was it fit for purpose of the loan payment then?

That is a choice they make after knowing the risks involved. The individual decides if the risk is appropriate or not. It is not for me or you to tell someone else whether the risk is suitable or not. A decent endowment with a low target growth rate invested in a good spread of unit linked funds has far more potential to hit target and pay off the mortgage than not. Its a decision that an individual can decide.

You continue to comment based on your opinion that it is not right for you and therefore it's not right for everyone else.

As I have said before, borrowing money to invest is commonplace. This is just a variation of it.

You want to disassociate the repayment of mortgage - we all know why

Do we? I don't know why.

dreamylittledream

Garry_Anderson wrote:

Dunston, we all note that you did not deal with the destruction of Dreamers argument.

i.e. primarily the duff redress formula and finance industry pushing of endowment.

However, what if these people cannot repay the massive loan at the end of term - how was it fit for purpose of the loan payment then?

After all - that is the reason why endowment mortgages were taken out (the clue is in the name).

You want to disassociate the repayment of mortgage - we all know why

*sigh*

Garry you really haven't destroyed anything other than your own credability in your well worn and uncompelling argument

I don't have time to post a proper response now but I shall later

Garry_Anderson

GA> However, what if these people cannot repay the massive loan at the end of term - how was it fit for purpose of the loan payment then?

Dunston> That is a choice they make after knowing the risks involved. The individual decides if the risk is appropriate or not. It is not for me or you to tell someone else whether the risk is suitable or not. A decent endowment with a low target growth rate invested in a good spread of unit linked funds has far more potential to hit target and pay off the mortgage than not. Its a decision that an individual can decide.

We can all see that you have decided to ignore the question (i.e. purpose of loan) and try to conflate enducement with purpose again.

D> You continue to comment based on your opinion that it is not right for you and therefore it's not right for everyone else. As I have said before, borrowing money to invest is commonplace. This is just a variation of it.

It isn't borrowing money to invest - it is borrowing money to repay a massive house loan.

The risks are the same - markets can go down - so why no big advertising campaigns for endowment mortgages forcing them down your throats now?

GA> You want to disassociate the repayment of mortgage - we all know why

D> Do we? I don't know why.

Isn't that what all in the finance industry do?

Pretend that endowments were taken out for the purpose of playing on the markets and not to repay large loans on peoples houses.

What sort of advisor would say it is good financial advice to bet your house on the markets - not knowing what the future holds?

Garry_Anderson

dreamylittledream wrote:

Garry you really haven't destroyed anything other than your own credability in your well worn and uncompelling argument

I don't have time to post a proper response now but I shall later

Just as well - I don't have time to read it at the moment.

I look forward to it

dunstonh

It isn't borrowing money to invest - it is borrowing money to repay a massive house loan.

Any money you borrow has to be repaid. What difference does it make if its a home loan or personal loan.

We can all see that you have decided to ignore the question (i.e. purpose of loan) and try to conflate enducement with purpose again.

No I havent. You just want everyone to be like you and that isnt how it is.

What sort of advisor would say it is good financial advice to bet your house on the markets - not knowing what the future holds?

People make decisions that involve risk every day. Its knowing what the risk is and whether it is acceptable to you or not that matters. People do it even now with endowment redress. Rather than pay off the mortgage, they invest it.

vinno65

dunstonh wrote:

Any money you borrow has to be repaid. What difference does it make if its a home loan or personal loan.

Come on Dunston with one they take your house with the other (unless its secured on the house) they can't

vinno

dunstonh

vinno65 wrote:

Come on Dunston with one they take your house with the other (unless its secured on the house) they can't

vinno

Not unless you have other assets. Remember Garry is ruling out borrowing to invest full stop. He fails to consider that many people have other assets which can make up any shortfalls that may occur. Therefore the risk is an acceptable risk and fit for purpose.

Garry_Anderson

dunstonh wrote:

Not unless you have other assets. Remember Garry is ruling out borrowing to invest full stop. He fails to consider that many people have other assets which can make up any shortfalls that may occur. Therefore the risk is an acceptable risk and fit for purpose.

Duh...

Somewhat revisionist Dunston.

We are talking about ENDOWMENT MORTGAGES.

Principally - gambling on the stockmarket to repay this massive loan is clearly unfit for purpose - as Vinno points out, it is secured upon your home.

There is nothing difficult for somebody of your obvious intelligence to understand