AFTER Endowment refund

minsuki

I put in a claim for my endowment policy when it first came to light, a few years ago now of which i recieved about £1,500, but due to the economic climate, the amount i will be short on my £31,000 is between £12,000 and £17,000 and i only have 5 years left to pay, i was told when i took out the mortgage origionally that the policy would pay the mortgage and i would have a lump sum, i would just be happy for the mortgage to be paid in full. surely the lender should be responible for the full amount, has anyone persued this further, can i go back and ask for more???????/ i can not be the only one in the position.HELPPPPPP

dunstonh

surely the lender should be responible for the full amount,

No. That is not how it works.

can i go back and ask for more??

No. You accepted the redress payment and rather than use it as it was meant to be you decided to continue with the endowment. You made that choice and therefore you take on the risk of that.

had you dont what you were meant to do, which is surrender the endowment and place the surrender value and the £1500 into the mortgage and converted to repayment basis then you should not be in this position now.

You cannot complain about decisions you choose to make where you did not seek advice.

holly_hobby

The amount you recd of £1,500 is the difference (inc added interest) between the position you would have been in, if you had taken your mortgage out on a repayment basis at inception. The offer from the provider, and your acceptance of the same, would have been on a full and final settlement basis - so sorry but there is no going back for more.

The idea is once the provider had put back in the position you would have been in, had you taken a repayment mge from outset, is to then have paid that lump sum off your mge, and converted the remainder to repayment. And in fact most providers, do also make you cancel your endowment upon acceptance of their offer. As the basis (I suspect) of your complaint in the first instance, was that you were not made aware of the risks, nor would have accepted the risks, of an endowment mge at inception if they had been correctly explained , so therefore saying you would have taken a repayment mge instead. So if they settled and also allowed you to maintain your endowment, you came out pretty well.

My advice would be, to switch the lot (if affordable), or partly switch your mge (the current estimated shortfall amount, or as much as you can afford to a repayment basis. Please remember though that the maturity value of your endowment MAY BE SUBJECT TO FURTHER CHANGE BEFORE MATURITY - AND EITHER INCREASE OR DECREASE - so I would convert as much of my os mge to capital and interest that I could realistically afford.

Or alternatively if you don't want to convert .. at a time when you know for certain what the shortfall will be, if any, you could consider a personal or secured loan to meet the difference (obviously dependant upon if you are still working and if you get accepted by the creditor) .. remember you may not qualify for a loan at the time, you will be paying interest on the money borrowed and would not be my preferred advice to you .. but its an option for consideration ...

Or of course, do neither and sell your property before the end of the mge term .....

Choices eh !!!

Holly

hcb42

If you still have five years to pay, which is how I am reading it, get overpaying now, you can still catch up

Bigsmak

A few years ago???

I worked for Scottish Life when 'poo poo hit the fan' with endowments in the year 2000. That is 11 years ago not a few.

You were told at the time that your endowment would not repay your mortgage and that you needed to do something about it.. EG> Get a repayment mortgage or pay a lot more into an investment vehicle.

What did you do at the time?

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OK.. we are a good bunch of people here so lets not talk about the what, whys and who's... lets see if we can help.

How much is your property worth.
How much do you owe on it.
Is it still an interest only mortgage. (also - what % are you paying)
how old are you
how much is your income / joint income
What is the projected figure for the endowment?