Endowment Compensation Calculations

AMILLIONDOLLARS

Just received a letter from the Halifax regarding compensation for misselling of endowment by Leeds BS. They have given me a choice of two options on how I want the compensation calculated . I know I've seen an explaination on this somewhere. Can someone point me to it or could DD explain again.

Thanks!!

dunstonh

There is actually more than 2 ways now depending on the complexity of the case. What two options have they offered you?

AMILLIONDOLLARS

Thanks DD for replying, had given up hope.

Option 1. We can calculate the difference using Halifax Standard Variable Rates over the term of your mortgage. We will be able to put this calculation into process immediately as we will not have to request information from other lender. by adopting this method, no allowance for changes to your mortgage such as fixed rates, discounted or capped rates mortgage arrears/advances or part repayment will be made. This method will produce an approximation to the figure had we used your specif mortgage interest rate history but we cannot guarantee the figures will be the same. The compensation we will pay may be mor or less than under Option 2 below.

Option 2. We can calculate the difference based on your specific mortgage history. To do this we require details relating to all your mortgage accounts since the start date of the policy.

As of today I had decided to go with option 2 as I have only had two mortgage companies in the time I have held my mortgage. I figured this would show a true reflection of what my status would have been if I had a repayment mortgage all along. What do you think?

Once again thank you for replying.

P.S. copy typed options from letter - forgive any errors

payless

I did try and do some figures in the past on this subject-
whilst I can't be held for any errors / losses ( as each case is different) the answers did seem to depend on whether they also took into account the potential savings you may have had by paying less into the endwment route.

You may be able to search back- I posted results some months back.


I agree that option 2 does seem the fairest (albeit may not come out with biggest figure) especially if rates you paid are available.

AMILLIONDOLLARS

Thanks Payless