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missold endowment compensation
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SUZIE
Posts: 2 Newbie
We took out an endowment in 1986 with the usual promises of covering the morgage and receiving an additional healthy lump sum. It is due to mature in 2011 showing a shortfall of £4000. I have recently made a (go it alone) claim and been offered £452. Can anyone tell me if this is an acceptable amount. Unfortunately we are not clued up on financial matters. We only have 14days to accept or lose the money offered.
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Comments
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The calculation they should use is defined and as long as the figures input are correct then the final result (£452) should be correct.
Unless you feel the calculation is wrong or figures input are wrong, then you should accept.
1986 wasnt a bad year to start an endowment and that is probably why your figure is low.
Also, the projected shortfall may be overstating or even understating the final outcome. Many people who have had projected shortfalls go on to surplus. Who is your endowment with and is it with profits or unit linked?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
the endowment was taken through abbey and is with standard life. It is with profits.
thanks for your advise.0 -
I would get it reviewed. It wont be as bad as some given the year you started (just before the 87 crash) but SL with profits is low potential.
SL usually pay up to £300 for mortgage advice to get your mortgage switched over. It may be a good idea to take advantage of that and the offer and get the converted to repayment mortgage.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Alternatively you can surrender or sell the endowment and then overpay the mortgage with the lump sum, premiums and redress money.
Post some info:
Surrender value
Monthly premium
Mortgage interest rateTrying to keep it simple...0
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