Strd Life offer. Is this good? help newbie

janknit

My first post so please be gentle.
I have been offered £5000 from Standard Life as compensation for missold endowment. I need to know if this is a good offer & also if I should sell or cash in AFTER I get my shares of course.
The endowment was taken out in nov 1994 for 20 years. ends nov 2014.
£39000. Life with profits fund.
monthly payment £118.25.
Cash in value today is £13424.
Breakdown of compensation is
value of plan £13399.98
amount would have paid with a repayment mortgage £16695.29
amount lost by having endowment mortgage £3295.31
Adjustments for costs £1707.10
Total comp £5002.41
What do you think please?
Sorry theres more. this has been worked out with assumptions on payments as I didn't have a record of discounted payments. If I were to get the records would this benefit me or them? HELP

EdInvestor

The idea is that the compensation would put you back in the position you would have been in, if you had taken out a repayment mortgage.This is based on the assumption that you surrender the endowment and use the proceeds, plus the redress money, to reduce the size of the mortgage, also remortgaging to repayment and increasing the monthly mortgage payments by the amount of the endowmwnt premium.

It's not a question of it being a good or bad offer - the offer is worked out according to a set formula provided by the regulator.

janknit

Thank you EdInvestor for your reply.
I think I have got the idea now but
Do I bother to get new figures so that they can work out the payment again, or would new figures make my offer less?
The new figures being to find out the exact discounted payments I have made over the years. They have worked it out on the SVR not discounted rates.
I obviously don't want to give them new figures if it will make it worse.
Also when I change to a repayment mortgage should I try to fund this another way and hold on to the S.L. endowment in the hope it will improve or just sell/cash in when I have my shares.
Sorry if I sound thick but very confused.

birdgirl_2

EdInvestor wrote:

The idea is that the compensation would put you back in the position you would have been in, if you had taken out a repayment mortgage.This is based on the assumption that you surrender th

birdgirl_2

hi i new , how do you go about claming for a misold endowment mortage , i had one and sold it on , apparently this does not matter . But, i cannot remember who it was with . Any ideas ?

EdInvestor

janknit wrote:

Do I bother to get new figures so that they can work out the payment again, or would new figures make my offer less?
The new figures being to find out the exact discounted payments I have made over the years. They have worked it out on the SVR not discounted rates.

No idea.AFAIK there is no general understanding on whether it is better to use the SVR or indivdidual payments, it will vary with each case. Might as well go with the offer I'd have thought.

Also when I change to a repayment mortgage should I try to fund this another way and hold on to the S.L. endowment in the hope it will improve or just sell/cash in when I have my shares.

Could you post the maturity projections,also, if you have a guaranteed sum assured and declared bonuses, please post them too and we'll have a look as to whether you should surrender or not.

janknit

Thanks EdInvestor what would I do without you.
Maturity projections are
Low rate £23,200.00
Intermediate £26,700.00
High £30,800.00

With profits bonuses
from Nov 2004 to Jan 2005 2.50% a year
From Feb 2005 to Nov 2005 2.00% a year

Hope Iv'e done this right. It is all that I can find on the paperwork I have.

EdInvestor

janknit wrote:

Thanks EdInvestor what would I do without you.
Maturity projections are
Low rate £23,200.00
Intermediate £26,700.00
High £30,800.00

If you cashed it in now and put it on deposit @4% also paying in the premiums to maturity, you should end up with 31,700, which beats ALL the projections.

So I should give this one a miss once you've received your windfall shares and then use the money to reduce the mortgage, along with the redress.

janknit

Thank you EdInvestor. I am very impressed, you are so clever.

Would you please be able to do another one for me.

It is with Lincoln financial group. I can't see that there are any bonuses.
Taken out Dec 1988 ends Dec 2013.
Sum assured £30,000
Monthly payment £43.52
Surrender value £10,462.00
Maturity projection.
4% £15,100
6% £17,600
8% £20,500

mgm40

Hi, hoping some one can help another newbie here.
I have just had a knock back from Pearl Assurance re my claim for a mis-sold endowment. Basicaly they have offered me a surrender value of £11,775 on a policy that was designed to pay £21,000 at the end of 2011 or £121.74 compensation (ha ha) if I continue with the policy until it's maturity (if, however, I take the compo' I lose the £200.00 'Pearl Promise' which is also paid on maturity). The current fund value is approx £14,500 with a projected maturity value of around £16,500.
Suggestions please on should I surrended the policy and invest the £11,775 in a high interest savings account or continue with the policy to it's close?
I don't think the third option of accepting the £121.74 is sensible unless I cash in the policy.
Also as the policy was purchased in 1985 do I have grounds to complain to the FOS given the paltry offer from Pearl?
Any help much appreciated.

janknit

EdInvestor where are you my friend?