DUNSTONH please read link again more info for you

peterwhite1876

Hi all,

advice required for a plonker

I was sold an endownment in nov 1998 by an advisor at Bairstow eves estate agents.
The advisor also arranged my mortgage with the darlington building society. the mortgage arranged was actually a repayment mortgage in my ignorance ''which i'm putting down to my age at time'' i just signed whatever it took to get the house because of the struggle i had getting a mortgage in the first place due to being self employed.

But the obvious question is, if the advisor arranged me a repayment mortgage why on earth did she sell me an endownment.

its clear i had no idea what i was doing at the time but the advisor certainly did!

i feel a bit stupid now thinking back but going for your first home you have to rely on other peoples advice and i clearly had been ill advised at the time, seems the plan was to sell me a policy and get commision irrelevant of weather i needed the product or not.

what can i do with regards to making a complaint

that if i you can claim for being young and stupid

any advice would be greatly received

thanks for takin the time to read my thread

dunstonh

what can i do with regards to making a complaint

you make the complaint saying the mortgage was on repayment basis and you were sold an endowment.

This usually results in the endowment being voided and your premiums returned plus interest (different to the nil risk vs risk calculation). You better check to see if your endowment is worth more than you have paid in though as you may get less back if you put the complaint in.

peterwhite1876

dear dunstonh,

thankyou for your advice

hoping you could help further

i've been reading my policy docs and under the section
MY MORTGAGE DETAILS
all the figures suggest that its an interest only mortgage as follows

mortgage loan £36574

assumed gross interest rate 6.69%

mortgage repayment less tax releif £187.18 ''wish it still was''

total monthly outlay(including home purchase plan) £264.84

this to me suggests that the building society may have made the error how do you see this

many thaks

peter white

dunstonh

Endowment quotes used to include a mortgage repayment cost on interest only basis so you got a bottom line figure. The fact it appears on the documents doesnt really have much to do with it. Just as many decreasing term assurance policies today get a repayment mortgage cost put on them yet you may not even be using one with a mortgage.

So, your position was that it should have been interest only but was set up by the building society on repayment basis in error.

That works in your favour as you can say that you have a repayment mortgage and it was like that from that start (you havent changed lenders at some point have you?) yet you were sold an endowment policy. The error works in your favour. The mortgage docs would have gone off to the lender and the endowment docs would have gone off the to the insurer. They dont see each others paperwork.

Someone checking the file will see that you have an endowment policy and a repayment mortgage from the start and those two things dont go together and that should result in an upheld complaint with the policy voided.

your complaint should be as simple as stating that you have a repayment mortgage and never had an interest only mortgage but you were sold an endowment and you think you shouldnt have been.