Do I have a claim?

toonfish

however much a month have you been paying, to cover £82,000 in 10 years?

dunstonh

I reckon at this point, a 1997 PEP/ISA mortgage wont provide any redress even if the complaint is upheld. The markets should have recovered enough to put it back on track and any small difference there may be could easily be offset with the fact a repayment mortgage doesnt drop much in the early days. (does depend on initial charges taken though and assumes normal target growth rate).

anitak

I have been paying £ 126.88 a month.
From what you say I am panicking unneccessarily, but I still feel confused as to why the red letters from L&G.....

defender_of_the_weak

If you believe you have been mis-sold then you should make sure you put the complaint in by recorded delivery to Sesame. If they lose a normal delivery at their end they can subsequently time bar the complaint even though you sent it.

The other option is to leave it and hope it lives up to the original promises, but remember if you dont act now the chance will be lost. Whether you have actually suffered a financial loss to date I cannot say (ref dunstons comments previously) but if you think it was mis-sold you should act

anitak

Am a bit shaky on the mis-selling. I remember being told that the market can go up OR down and affect this vehicle, but I also clearly remember the FA telling me that these are pretty much a dead cert and historically have always performed even though mid term they didnt look likely to. I did feel pressured to believe him, and there wsa so much jargon going on that truly I just went with what he told me to do.
I dont wat to be just jumping on a band wagon, but am worried as to where all this may end up.

EdInvestor

Of course I now only have 23 days till time runs out - EEK!

Could you explain exactly what you think is going to happen in 23 days?

dunstonh

Am a bit shaky on the mis-selling. I remember being told that the market can go up OR down and affect this vehicle, but I also clearly remember the FA telling me that these are pretty much a dead cert and historically have always performed even though mid term they didnt look likely to.

So, risk was discussed. Past performance is no guide to future returns but discussion about past performance (i.e. using the term historically) is not bad. It needs to be placed in context.

but I still feel confused as to why the red letters from L&G.....

The projection rates assume the same rate of return a year every year until maturity. It doesnt work that way.

Plus the projection rate L&G are using may not be consistent with the potential of the fund or the original target growth rate. For example, the target growth rate required to hit target may be 7% p.a. If L&G are projecting on 6% then straight away you have a 1% difference p.a. That would automatically put in a shortfall position.

Equally, you could have a fund that is averaging 10% p.a. which is above that used in the projection using a lower rate.

A projection is just an example using a specified rate. It may understate or overstate the actual potential of the investment. This is why you really need the PEP/ISA reviewed to make sure the investment funds are still suitable for you going forward (unlikely as there are better options than L&G).

toonfish

£126 per month over 10 years is only around £15,000 paid in, minus the cost of life insurance and admin charges. Was this really supposed to cover £82,000?

anitak

Am at 10 year mark of 25 year mortgage.
Still trying to find an IFA......

dunstonh

www.unbiased.co.uk is the database of IFAs. Postcode search and do not filter any other option (filtering, especially by qualification is highly flawed).