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Any Advice Appreciated
ElenorP
Posts: 1 Newbie
Due to pressures of work in 1990, My husband and I, engaged services of an independent financial advisor, with the view to buying a house. The financial advisor recommended a low interest endowment mortgage.
We left all the arrangements to him, this was in the form of the mortgage with one company and the endowment with another.
Everything seemed to go smoothly until approximately 3 years ago when we discovered that the endowment had not been set up properly.
The mortgage matured this year and we have been told that we have only been paying the interest during the mortgage term. We were led to believe that the mortgage was a complete package. We have further been informed that our monthly payments will be £4,500 which is impossible as my husband does not earn that much.
I would like to know; as we have a policy number, why no-one informed us of this error, neither the mortgage brokers nor the insurance company gave us any indication that there was a problem.
Because of this, we are being penalised for something that is not our fault. Plus the fact that we were not informed of any possible shortfalls.
Where do we go from here? Any advice would very much be appreciated. I would also like to know the following:
Q. As we have a policy number, how can it be said that the endowment had not been set up?
Q.How do I check that a FIMBRA SIB CODE is genuine?
Q.Where do we stand as far as time scales are concerned?
Thank you
We left all the arrangements to him, this was in the form of the mortgage with one company and the endowment with another.
Everything seemed to go smoothly until approximately 3 years ago when we discovered that the endowment had not been set up properly.
The mortgage matured this year and we have been told that we have only been paying the interest during the mortgage term. We were led to believe that the mortgage was a complete package. We have further been informed that our monthly payments will be £4,500 which is impossible as my husband does not earn that much.
I would like to know; as we have a policy number, why no-one informed us of this error, neither the mortgage brokers nor the insurance company gave us any indication that there was a problem.
Because of this, we are being penalised for something that is not our fault. Plus the fact that we were not informed of any possible shortfalls.
Where do we go from here? Any advice would very much be appreciated. I would also like to know the following:
Q. As we have a policy number, how can it be said that the endowment had not been set up?
Q.How do I check that a FIMBRA SIB CODE is genuine?
Q.Where do we stand as far as time scales are concerned?
Thank you
0
Comments
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Have you received any documentation or annual statements since 1990? If you have had an endowment for 21 years during the time when they have routinely been in the headlines about not paying back the mortgages they are backing and not checked that it was on course to pay back the loan then it might be hard to claim negligence.
Have you actually been paying the amounts each month that were specified in the original endowment contract? Again if not did you question why the payments were not correct?
If you haven't already written or phoned the mortgage company and the endowment one then I would do that asap to check the exact position with them but 21 years into a 25 year term is going to be quite hard to recover the shortfall if you haven't been paying it.Remember the saying: if it looks too good to be true it almost certainly is.0 -
So, have you been making payments to two different institutions?the mortgage with one company and the endowment with anotherI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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