Had endowment offer re;mis-selling but need advice....

fitorbust

After following the excellent advice on this site I sent a letter re my 1987 Halifax Standard Life Endowment and have had a letter saying they will ofer me financial compensation and I have 2 choices.
1 They can calculate the difference using the Halifax Standard Variable rate over the term of the mortgage.
2. They can calculate the difference using my specific mortgage history. To do this they need details relating to all my mortgage accounts since the start date.

I can't decide whether it is worth the research to go for the 2nd option as we have changed a few times or just let them do their calculation on option 1. Has anyone had a similar situation, and what did you do if you have?

Thanks
Lesley

scottishlizzie

I work in the Complaints Section of a large insurer, handling these type of complaints. I will do some digging for you tomorrow and find out what might be the best option for you (to maximise your compensation of course)!

knuckledragger

fitorbust,
If during the term of your mortgage you made use of discounted or fixed rates below the SVR then ask them to use the Halifax SVR rate for the whole of the term. It stands to reason that if this is the case then you will be on the winning side financially. Unless you were unfortunate enough to be paying above the SVR (locked into a fixed rate when rates fell for example) in which case give them details of your particular circumstances.

fitorbust

Thanks to both of you.
I thought that would be the case knuckledragger, but will wait to hear what you find out Lizzie.
This forum is a great way to find stuff out!

scottishlizzie

Spoke to someone at work today and they explained it to me but it's late now and I've forgotten what they said. I will check again tomorrow and get back to you again. Sorry. If you like I can get a calculation done for you but I would need to know some details like amount borrowed, start and end dates, rates paid etc.

I think Knuckledragger is right but will confirm tomorrow.

scottishlizzie

I was told today by one of our number crunchers that the way to maximise compensation is to use your actual rates if these have been below the standard variable rate. I know that doesn't seem logical but they assured me it is right. If you want to send me a private message with some details I can get one of our chaps to run comparative calculations for you. It wouldn't necessarily be exact but it would confirm the best option.

Info I would need is:

amount borrowed
sum assured of policy
premium of policy
start date of policy and mortgage (should be same or similar)
maturity date of policy
original term of mortgage
interest rates payable since outset

indicate if you have changed lender, taken any further advances, made any lump sum repayments

knuckledragger

Interesting, can you expand on why this is the best way. Nothing too technical, I'm a simpleton really:D

fitorbust

Thanks very much for your input - we have had 3 different mortgages in that time so i will fill in the complex form that the Halifax sent us. Anything is a bonus in my eyes!
I will let you know what happens.
Lesley

scottishlizzie

Right, I think it is because:

If you are paying a rate of interest lower than the standard variable rate then, for the same monthly payment, more money will go towards reducing the capital outstanding and less towards the interest than if you were paying a higher rate of interest.

Obviously this only applies for capital and interest/repayment mortgages, but as the compensation calculation for endowment mis-selling compares your position with what it would have been had you taken a C&I mortgage it is in your interest to show that as much capital as possible would have been paid off had you taken a repayment mortgage. This way, the loss you have suffered by taking an endowment mortgage will be greater and the compensation higher.

Hope that makes sense.

knuckledragger

It does make sense. Simple but complex.

Sofa_Sogood

knuckledragger wrote:

It does make sense. Simple but complex.

I'm glad you said it

Maybe it's designed so that people 'give up' because it is complex to some people? Like me and MrS

I'm tempted to leave things as they are and write off anything that may have been mis-sold, as Mr S is, but then I read the OP's post and Martin's articles and think maybe it's worth looking at again?

Just my opinion because we're really not after any compensation or anything.

Just a clear answer without going through 20 people would be nice