mis-sold endowment advice please

cookieliz

After reading the advice on this great site I decided to try for compensation on my endowment. I hadn't considered this before as I have such a small mortgage and thought I had no hope.
To my surprise I recieved a letter this morning offering a payment of £320.44 although a payment was not expected at all, is this a fair amount, I would be delighted if someone could give me advice on whether to accept or not.

DETAILS
The policy is a joint life low cost endowment which was taken out in october 1992 with CIS. The term is 25years.

The cost is £28.18 per month with basic sum assured £7,293 guaranteed sum of £17,000 death benefit .

The current surrender value is £5,915.

The last letter I recieved about a shortfall was in Jan 2005 details as follows:- 4%.......... shortfall of £5,600
5.75%....... " £3,500
7.5%........ " £1,000
We changed to a repayment mortgage in June 2004 but was advised at that time to keep the endowment. This CIS have taken this into account.

The calculations have taken into account two seperate comparasons.
......The surrender value of the policy compared to how much would have been paid off the mortgage if it had ben a repayment type.
......The cost (monthly repayments) of the endowment mortgage over the period in question compared to the cost of an equivalent repayment mortgage.

I hope I have provided enough information for someone to offer their thoughts on what to do.

Thanks in advance.

defender_of_the_weak

Rough calc based on the information you have provided suggests this is in the right area. CIS are generally a company that tends to play with a straight bat in terms of calculations of loss, so on balance i would say accept

cookieliz

Thanks a lot for the advice! :beer:
Not knowing much about mortgages, I have a few questions that I need advice on.
I have a stepped tracker rate mortgage for a three year period with Abbey ending in June. As there will be only 10 years left now I was wondering if it would be better to take out a shorter term loan. We are now in a position where we can put a bit extra to our monthly payment.
The amount still outstanding is around £17,000.

We also have another small endowment which was taken out as a top up and it is linked with our critical illness cover.

Also is it still wise to hold on to the endowment mentioned above if we can afford to.

I hope all of this makes some sense.