HELP! Endownment £7,200 shortfall

mikon

Aviva have just informed me that my endownment will be £7,200 short. Can I seek compensation from them on this. When I took the policy out in 1987 I was told the endownment would pay the £25,000 mortgage and also have a bonus which we could use to go on a cruise. Now I am being told it is £7,200 short.

Can anyone advise me on what I need to do. How will I pay off my mortgage I cannot get credit as my credit scoring is shot to hell as I am on a DMP.

My mortgage is with NRAM formerly Northern Rock and NRAM do not do mortgages so it is unlikely I can change products. As my credit record is shot I will not be able to get a loan or a mortgage elsewhere.

I did not take any cover out to cover this short fall.

Any help from anybody is appreciated.

dunstonh

Aviva have just informed me that my endownment will be £7,200 short. Can I seek compensation from them on this.

Investment returns are not something you can complain about. There is no compensation available for shortfalls either.

it is unlikely that a shortfall of £7200 has just appeared. Especially one taken out in 1987. I would expect that you have been notified annually since around 2001.

My mortgage is with NRAM formerly Northern Rock and NRAM do not do mortgages so it is unlikely I can change products.

That is an incorrect assumption. They will convert or part convert mortgages to repayment basis.

Can anyone advise me on what I need to do. How will I pay off my mortgage I cannot get credit as my credit scoring is shot to hell as I am on a DMP.

The lender will usually take the maturity and extend the shortfall on repayment basis for around 5 years typically.

mikon

dunstonh wrote: »

Investment returns are not something you can complain about. There is no compensation available for shortfalls either.

it is unlikely that a shortfall of £7200 has just appeared. Especially one taken out in 1987. I would expect that you have been notified annually since around 2001.



That is an incorrect assumption. They will convert or part convert mortgages to repayment basis.



The lender will usually take the maturity and extend the shortfall on repayment basis for around 5 years typically.

Thank you for your help. Hopefully they willl convert the remaining amount into a repayment basis.

themull1

The shortfall on endowment policies has been going on for years and years, had you never checked to see how yours was doing in all that time?

mikon

Themull1

Yes I have been aware of this. But if you do not have any additional income to put into an ISA or alternative savings account there is not much one can do. Lets be honest when you take these out you seek the advice of an expert and if that expert ill advises you then there is not much you can do.

Finally we did not expect a shortfall as much as this as the projected targets we have been sent have not reflected this amount.