misold endowment

lulu777

question; SHOULD I ACCEPT THE BANKS FIRST OFFER OF COMPENSATION
THE ENDOWMENT TAKEN OUT IN 1987 PROMISED AT LEAST THE MINIMUM DEATH BENEFIT ON MATURING BUT THE OFFER IS AT LEAST 10.000 BELOW THIS
PLEASE HELP
SUE

EdInvestor

Please post some more details.Missold endowment redress is based on putting you in the same postion you would be in if you had taken out a repayment mortgage.The offer is not a negotiating position.The death benefit isn't relevant.

dunstonh

BUT THE OFFER IS AT LEAST 10.000 BELOW THIS

The redress payment isnt to cover a possible shortfall that may or may not occur. It is to put you in the position you would have been had you been on a repayment mortgage from the start.

So, if you switch your mortgage to repayment basis and use the surrender value and redress to reduce the mortgage balance, you will then be where you were had you been on repayment mortgage, which is what you were asking for in your complaint.

You may find your mortgage payments go up but that is normal as endowment mortgages were often cheaper and that was often the a common reason for doing them.

SHOULD I ACCEPT THE BANKS FIRST OFFER OF COMPENSATION

The calculation uses a defined method. Its not something you can haggle unless you think the figures are wrong or the calculation hasnt been done correctly.