Endowment shortfall

dunstonh

am I now being told that there's going to be a massive shortfall? As I said, this is nothing short of corporate theft. Can you see what I am getting at? Thanks. Clive.

You may have heard of a few events over the last decade.

1 -the dot.com crash
2 - the credit crunch
3 - global recession/depression.

If not, I suggest you learn about them.

I still don't think it right that huge institutions get away with it.

The stockmarkets around 20-25% lower than a decade ago. How would you have made a profit?

there was me stupidly believing that my house would eventually be paid for in 3 years.

your endowment would have been projecting a shortfall since about 2001. So, for the last decade, what have you been doing about it?

When interest rates fell to record lows (which hit mortgage endowments), did you use some of that money saved to make up for it?

tanith

Have you never been sent a letter highlighting the fact that your endowment was going to have a shortfall? We were kept well aware of how ours was performing and had ample warning that we needed to do something about it, which we did in good time and now we are on track to pay it off slightly before the term is up as we have as well as changed to a repayment mortgage overpaid as much as possible..

rossclivejamesronald

Holly,
Thanks again for all your advice, you certainly seem an expert on the subject!
Gonverting to a repayment mortgage appears to be the answer but as there's only 3 years left
i don't think i could afford the payments as i would not want to extend the duration.
thanks,
clive.

opinions4u

You are understandably disappointed with Standard Life's investment performance. So was I.

But they're not alone in failing to deliver what they intended to deliver given the performance of the markets over the last decade in particular.

One thing they have been very clear about for a good 10+ years is that there has been a risk of their policies underperforming. They've told you several times. Why did you ignore them?

Valli

I've been getting shortfall letters for years. And I still have 5 years left on my endowment. Different company though but the endowmnet mis-selling scandal has been going for years. Some of us had claims in;)

What I did though, last time I dealt with my mortgage (following divorce) was converted it to repayment.

rossclivejamesronald

With regard to ignoring letters and not doing anything about it i am not in any position to increase my repayments
to camouflage the poor performance of my policy.

BoGoF

Surely you must be in a position to overpay.

You must be on an interest only mortgage, how much have your repayments decreased by over the last few years. To mitigate your losses you should have been overpaying or investing in another repayment vehicle.

I hate to say it but seems like you have buried your head in the sand

rossclivejamesronald

Valli,
Thank you for your post,so i'm not the only one.
clive.

opinions4u

rossclivejamesronald wrote: »

With regard to ignoring letters and not doing anything about it i am not in any position to increase my repayments
to camouflage the poor performance of my policy.

Sell your Standard Life shares then.

holly_hobby

Clive,

Did your policy have a mortgage promise or guarantee provided by SL ?

Check your docs, it does depend upon the average return over a given term, but you may strike lucky.

I have attached a PDF re info on this for your reference .... I do hope it helps.

http://ifasok.co.uk/Downloads/BWhmp28203%20(1).pdf

Holly