endowment pay out before morgage ends

tinky2

Hi i would like any coments or advice anyone would like to give

today i called my endowment companies 3 seperate policy's with 2 different companies 2 due to mature in April last one mid July they advised money would not be sent to me but directly to morgage company Nationwide.This was not somethink i was aware or stupidly i assumed would be sent to me to then pay direct to morgage company
I called Nationwide voiced my concerns as in a discounted deal until end of July they advised i will incure a penalty due to making overpayments. Itold then when got deal i told them i had 3 seperate endowments but they said no problem just line discount to last endowment.
I am so angry told them they are aware of endowments and when matures yet they still sold me a product knowing i will incure fees due to overpayments.They have logged a complint and expecting a callback to discuss further tomorrow

I sugested i put money into my flexi account then pay all of morgage end of July they said cannot do they said they can request money sent to me from endowment company but they will then change me to repayment morgage paying £10,000 per month until end of morgage term.

Any advise apreciated thanks in advance

DVardysShadow

First thought is to instruct the endowment companies to hold on to the funds until you are clear of the penalty.

tinky2

i have already asked if money can be held back by endowment company they say cannot be done on maturity date cheque sent to morgage company

opinions4u

Ok, who sold you the mortgage deal that leaves you open to the possibility of having to pay penalties when your endowment matures?

Secondly, did they "advise" you to take it, or did you choose to take it?

If you received proper advice (rather than somebody saying "these are you options, what do you want?"), then there is a case to pursue a mis-selling complaint.

If you chose the product yourself, then you are totally reliant on the goodwill of Nationwide. Given the relatively short timescale between maturity of policy and expiry of mortgage product, I'd expect common sense to side with you.

kazd

Keep pushing your complaint, if needs be, write to Graham Beale. Keep pushing them.

tinky2

product sold to us by nationwide think we took option of no advise however were going to go for 2 year discounted they said you can have 3 year which will end in line with last endowment policy so as far as i am concerned they are the experts they should have advised if policy's mature before end of morgage will incure charges i would have gone with the 2 year discount.:mad: as i told advisor over phone at nationwide today they are aware when endowment mature as linked to morgage

magpiecottage

There seem to be two issues here.

First, it seems that the endowments were "assigned" to Nationwide. If not, then the insurer(s) should pay you direct and if they don't you have a complaint against them.

If they were assigned then a complaint to Nationwide ought to succeed on the grounds that it sold the product to you when it knew the policies would mature before the early repayment charges ceased to apply.

FSA Rule MCOB 4.8.2G(2) says, "A firm selling what it considered to be an inappropriate product, would be in breach of Principle 6 as it would be conducting a regulated activity without regard to the customer's interests."

Principle 6 requires firms to treat customers fairly - and it therefore seems that Nationwide would be sunk on this point.

Wh05apk

Most lenders will waive fees from endowment maturirties provided they knew about them at the start, speak to N/w again, moving up the foodchain, until youfind someone that knows the rules.

tinky2

thankyou for all your support and reply's the nationwide called me back today they have logged formal complaint and will take up with branch that sold me the producr advised will hear back within 5 working days i also mentioned FSA rule (thanks for that info made me sound like i knew what i was talking about) i will keep you all updated